3 P&C Insurance Stocks That Have Gained More Than 50% in 2024

Group 1: Industry Performance - The property and casualty (P&C) insurance industry has shown strong performance in 2024, driven by better pricing, prudent underwriting, and increased exposure, with a year-to-date return of 26.5%, outperforming the Finance sector and the Zacks S&P 500 composite [5][10] - Global commercial insurance rates declined by 1% in Q3 2024 after 27 consecutive quarters of increases, with property rates down 2% and casualty rates up 6% [3] - Insured losses from natural disasters in the U.S. are projected to exceed $135 billion in 2024, marking the fifth consecutive year with losses above$100 billion [8] Group 2: Company Highlights - Mercury General Corporation (MCY) has seen its shares rally 82.6% year to date, with a consensus estimate for 2024 earnings per share indicating a year-over-year increase of 2,016.6% [31] - Axis Capital Holdings (AXS) has a strong dividend history, with a yield of 1.96%, and is projected to have a 10.4% increase in earnings per share for 2024 [24][32] - Palomar Holdings, Inc. (PLMR) is expected to generate adjusted net income between $113 million and$118 million in 2024, with shares rallying 84.8% year to date [25][39] Group 3: Economic Outlook - The U.S. economy is projected to grow by 2.5% in 2024, with continued expansion expected [7][28] - The Federal Reserve has cut interest rates by 0.25% in December 2024, marking the third consecutive reduction, which is expected to support investment income for insurers [26] - Global non-life premium growth is forecasted to slow, with a negative CAGR of 2.3% expected for 2025-2026 [29][34]