European Insurance Stocks Supported by Rising Risk Premiums, Says Analyst

European insurance companies are expected to see their stock prices supported by rising risk premiums, according to a research report by Bruyette & Woods. According to Jin10, analyst William Hawkins noted that the current weakness in stock prices presents a buying opportunity, as the industry's risk-reward ratio is likely to outperform that of the 2010s. Despite the unexpected U.S. attack on Iran over the weekend, Hawkins believes that European insurers' risk management processes should not be caught off guard, given Iran's long-standing status as a sanctioned regime. While underwriting losses may occur, Hawkins suggests that unless there are significant errors in company processes, these losses are unlikely to have a substantial impact on the industry.