North American Insurance: 2Q26 Investment Marks A Modest Tailwind

Research evidence excerpt

North American Insurance: 2Q26 Investment Marks A Modest Tailwind

Global Research

20 July 2026ab

North American Insurance Equities

North America2Q26 Investment Marks A Modest Tailwind

Insurance

Brian Meredith

Investment marks to have modest positive impact on 2Q26 book value Analyst

We estimate that investment marks will have a modestly positive impact to BVPS this brian.meredith@ubs.com

quarter, on average, for the P&C insurers in our coverage. Interest rates moved modestly +1-212-713 2492

higher during the quarter, resulting in some pressure across fixed income markets, with Justin Tucker

the U.S. 10-year Treasury yield ending at 4.4%, up from 4.3% at the end of March. The Associate Analyst

Agg index, of U.S. investment-grade bonds including Treasuries, Agencies, CMBS, ABS justin.tucker@ubs.com

and IG corporates, generated a modestly negative return during the quarter with credit +1-212-713 2325

spreads narrowing offsetting some of the adverse impact of higher treasury rates. Leandro Leite

Strong equity market performance more than offset the weakness in fixed income, with Associate Analyst

the Russell 1000 advancing 14.8%. Overall, we estimate investment marks will increase leandro.leite@ubs.com

BVPS by approximately 100bps, on average, across our P&C coverage universe. +1-212-882 5559

ALL, CB and RNR book value most positively impacted by marks

We expect Allstate to see the largest tailwind to BVPS growth from favorable investment

marks at approximately +380bps. We attribute this primarily to the strong performance

of equity markets during the quarter, coupled with ALL’s above-average equity

exposure, with equities representing approximately 12% of invested assets. Chubb is

also expected to benefit meaningfully from investment marks at approximately