P/C insurance is the least-impacted industry by the coronavirus pandemic, at least so far, according to an analysis from S&P Global Market Intelligence.
S&P compiled its analysis for March, generating industry medians from its Credit Analytics Property of Default Market Signal model (PD), which uses stock price and assets volatility as inputs to calculate a 1-year probability of default.
Property/Casualty insurance was followed by healthcare real estate investment trusts, multiline insurance, life and health insurance and industrial real estate investment trusts, respectively. While all five areas scored well on the “least impacted” front, they still showed some pressures, according to S&P’s PD model.
“We continue to see market stresses and increasing unemployment rates, which we expect to elevate PDs in the coming months,” the S&P report noted.
By contrast, here are S&P’s top 5 industries that saw the most coronavirus/COVID-19 impact based on market signals: airlines, followed by casinos and gaming, leisure facilities, auto parts and equipment and oil/gas drilling, respectively.
As S&P pointed out, there are multiple reasons airlines are the industry most affected by the coronavirus: mass grounding of air traffic, border closures, and shelter-in-place policies globally.
These actions, S&P said, “have caused detrimental impacts on stock performance and raise concerns about the viability of some airlines.”