By Carlos Pallordet

April 1 - (The Insurer) - ProAssurance, Heritage and HCI Group topped the gains in March as U.S.-listed P&C stocks pushed ahead despite a global equity selloff.

U.S. equities experienced their steepest decline in more than two years in March as investors grappled with uncertainty stemming from unpredictable trade policies and increasing trade war concerns.

Investor confidence has been further shaken by recent negative economic developments in the U.S., including Friday's report that core inflation increased more than anticipated, while consumer sentiment dropped to its lowest point since 2022.

The blue-chip S&P 500 index fell 5.8% in March, its worst monthly record since January 2023.

Meanwhile, the tech-heavy Nasdaq Composite lost 8.2% during the month, contributing to a 10.4% fall for the first quarter.

In contrast, the sector-specific S&P 500 Insurance index delivered its third consecutive monthly gain with a rise of 1.1% in March.

The most significant gains during the month were among smaller-cap companies, in particular coastal and specialty commercial insurers. This shift contributed to a slowdown from the 5.6% increase in January and 5.0% rise in February.

Medical liability insurer ProAssurance topped the gains in the U.S. cohort, ending the month 49.3% higher following the announcement on March 19 that The Doctors Company had agreed to buy the company for $25 per share in cash.

Shares in WR Berkley surged 12.8% for the month following the announcement on Friday that Japanese carrier Mitsui Sumitomo Insurance is to purchase 15% of its outstanding common stock. MSI said it will only purchase shares from third parties and “over a reasonable time period”.

Among coastal insurers, Heritage recorded a 22.7% increase in its share price, while HCI Group climbed 13.3% in the month following the launch of a new, streamlined organisational structure.

Florida-based peer Universal Insurance Holdings added 6.9%, compounding a 12.5% gain for the year to date.

Other notable risers in the month included SiriusPoint and Kinsale Capital Group, both up 12.7%, and Fidelis Insurance Holdings, which added 10.1%.

Meanwhile, global P&C insurer AIG advanced 4.8% in March, taking its quarterly gain to 19.4% – among the highest in the U.S. cohort. In comparison, shares in competitor Chubb were up 5.8% in March and 9.3% in the first quarter.

At the other end of the spectrum, James River recorded the largest monthly fall across the 41 U.S.-listed P&C (re)insurers tracked by The Insurer. Shares in the carrier fell 15.2% in March after it disclosed a Q4 earnings miss at the start of the month, including a 57 percentage point deterioration in its combined ratio.

Insurtechs Hippo and Lemonade were also among the significant fallers last month, dropping 11.0% and 13.5%, respectively.

The Baldwin Group and Ryan Specialty led the gains among brokers in March, rising 8.6% and 5.5%, respectively. In contrast, Aon and WTW were the two only members of the group to end March in negative territory, having fallen 2.5% and 0.5%, respectively.