|Bid||37.50 x 1300|
|Ask||37.51 x 1100|
|Day's Range||37.37 - 37.57|
|52 Week Range||30.48 - 37.57|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||5.91%|
|Beta (5Y Monthly)||0.83|
|Expense Ratio (net)||0.35%|
The string of solid fourth-quarter earnings from the insurance industry players had a positive impact on the related ETFs that saw smooth trading over the past week.
Cincinnati Financial Corp. said Friday it will raise its quarterly dividend by 7.1% to 60 cents a share, from 56 cents. The insurer's new dividend will be payable April 15 to shareholders of record on March 18. Based on current stock prices, the new annual dividend rate would imply a dividend yield of 2.28%, compared with the yield for the SPDR S&P Insurance ETF of 1.75% and for the S&P 500 of 1.86%. Cincinnati Financial's stock was down 1.8% in afternoon trading. It has lost 6.9% over the past three months, while the insurance ETF has gained 3.6% and the S&P 500 has advanced 6.5%.
Shares of Voya Financial Inc. surged 5.8% toward a record high in premarket trading Wednesday, after the investment and insurance company announced a deal with Resolution Life Group Holdings to divest substantially all of its individual life and other non-retirement annuities businesses for expected proceeds of $1.7 billion. That exceeds Voya's previously announced target of generating at least $1 billion of free cash flow from its individual life business through 2024. The company said it plans to use $600 million to $800 million of the proceeds to pay down debt and expects $900 million to $1.1 billion of the proceeds to help fulfill its plan to repurchase $1 billion worth of its stock in 2020. Separately, Voya said it expects adjusted earnings per share to reach a quarterly run rate of $1.80 to $1.90 by the end of 2021. That compares with the current FactSet consensus for fourth-quarter EPS of $1.58. Voya's stock, which is on track to open above the all-time intraday high of $59.00 reached on Nov. 6, has rallied 46% year to date through Tuesday, while the SPDR S&P Insurance ETF and the S&P 500 have gained 27%.
Cigna Corp. announced Wednesday a deal to sell its group life and disability insurance business for $6.3 billion in cash to New York Life. Cigna's stock was indicated up about 2% in premarket trading. The company said it expects to use the proceeds to repurchase shares and pay down debt. In conjunction with the deal announcement, Cigna said it has increased its share repurchase authorization by $3 billion, to $4 billion. Cigna expects deal, which is expected to close in the third quarter of 2020, to be neutral to earnings in 2020 and to add "modestly" to earnings in 2021. "We are confident that clients and customers, including the many who also receive health and related benefits through Cigna, will continue to enjoy the high-quality benefits solutions and service for which this business is known," said Matt Manders, Cigna's president of strategy and solutions. Cigna's stock has gained 1.9% year to date through Tuesday, while the SPDR S&P Insurance ETF has run up 27.3% and the S&P 500 has gained 27.4%.
Chubb Ltd. announced Thursday a new stock buyback program of up to $1.5 billion for next year. The insurance company's new program will become effective when the current program expires on Dec. 31, 2019, and will run through Dec. 31, 2020. Based on Wednesday's stock closing price of $152.51, the new program could represent up to about 2.2% of the shares outstanding. Chubb also declared a regular dividend of 75 cents a share, which implies a dividend yield of 1.97%, compared with the implied yield for the S&P 500 of 1.91%. The dividend will be payable Jan. 10 to shareholders or record on Dec. 20. The stock, which was little changed in premarket trading, has gained 18% year to date, while the SPDR S&P Insurance ETF has rallied 24% and the S&P 500 has hiked up 24%.
Investing.com - Insurance broker Willis Towers Watson (NASDAQ:WLTW) surged in midday trading after a report that Aon (NYSE:AON) is preparing to make a bid for the company in what could be one of the biggest deals in the sector.