Insurance Subsector Views: Life and P&C Both Close to Fair Value

Research evidence excerpt

Insurance Subsector Views: Life and P&C Both Close to Fair Value

Life Insurance – Neutral P&C Insurance – Neutral

◼Expect companies to conservatively manage balance sheets ◼While fundamentals are worsening, it is off a high base, and

and keep strong levels of capital and liquidity we expect companies to act conservatively in a softer market

◼See private credit exposure as a manageable percentage of ◼Defensive profiles to support sentiment & ratings (companies

industry portfolios with substantial structural protection have supported credit profiles during stress in the past)

◼Exposed to macro risks longer-term, but n-t environment ◼Expect P&C to trade relatively in line with the broader market

conducive and see risks as balanced overall at current levels with current spread levels at FV modestly inside the index

Insurance Spread Performance, YTD subsector spread levels compared to JULI ex EM

Life P&C

Moved Life Moved YE23 Current OW on 35 to YE24 Life to N YE22 Life: +20bp Life: +10bp 11/22/22

30 YE21 Life: +15bp P&C: -1bp Life: +6bp on 3/5/26 P&C: -5bp

Life: +3bp P&C: -2bp P&C: -2bp

25 P&C: -3bp YE25

Life: +9bp 20 Moved

P&C: -4bp Life to UW

15 on 4/8/25

-5

-10

-15

31-Dec-21 31-Jan-22 28-Feb-22 31-Mar-22 30-Apr-22 31-May-22 30-Jun-22 31-Jul-22 31-Aug-22 30-Sep-22 31-Oct-22 30-Nov-22 31-Dec-22 31-Jan-23 28-Feb-23 31-Mar-23 30-Apr-23 31-May-23 30-Jun-23 31-Jul-23 31-Aug-23 30-Sep-23 31-Oct-23 30-Nov-23 31-Dec-23 31-Jan-24 29-Feb-24 31-Mar-24 30-Apr-24 31-May-24 30-Jun-24 31-Jul-24 31-Aug-24 30-Sep-24 31-Oct-24 30-Nov-24 31-Dec-24 31-Jan-25 28-Feb-25 31-Mar-25 30-Apr-25 31-May-25 30-Jun-25 31-Jul-25 31-Aug-25 30-Sep-25 31-Oct-25 30-Nov-25 31-Dec-25 31-Jan-26 28-Feb-26 31-Mar-26 30-Apr-26 31-May-26 30-Jun-26

Source: J.P. Morgan; as of 8-July-2026