Here’s Why Insurance Stocks are Spiking Now

Cetera Financial Group has agreed to purchase Genworth Financial Investment Services — the tax and accounting financial advisor unit of Genworth Financial (NYSE:GNW). The anticipated transaction will be closed in  approximately 90 days, subject to customary closing conditions and regulatory approvals.

Hartford Financial (NYSE:HIG) is also seeing heavy interest in call options for January 17 and February 19 following renewed takeover chatter. The Genworth Financial deal is causing investors to take these bets more aggressively.

Here’s how insurance stocks are reacting to the M&A halo:

Genworth Financial Inc. (NYSE:GNW): GNW shares recently traded at $7.21, up $0.44, or 6.5%. They have traded in a 52-week range of $4.80 to $14.77. Volume today was 5,265,005 shares versus a 3-month average volume of 9,934,770 shares. The company’s trailing earnings are $-0.29 per share.

Hartford Financial Services Group Inc. (NYSE:HIG): HIG shares recently traded at $17.50, up $0.81, or 4.85%. They have traded in a 52-week range of $14.56 to $31.08. Volume today was 4,336,372 shares versus a 3-month average volume of 8,183,490 shares. The company’s trailing P/E is 7.58, while trailing earnings are $2.31 per share.

Lincoln National Corp. (NYSE:LNC): LNC shares recently traded at $21.00, up $0.79, or 3.91%. They have traded in a 52-week range of $13.75 to $32.68. Volume today was 3,202,642 shares versus a 3-month average volume of 6,139,820 shares. The company’s trailing P/E is 6.72, while trailing earnings are $3.13 per share.

Principal Financial Group Inc. (NYSE:PFG): PFG shares recently traded at $26.01, up $1.2, or 4.84%. They have traded in a 52-week range of $20.48 to $35.00. Volume today was 1,365,242 shares versus a 3-month average volume of 3,373,020 shares. The company’s trailing P/E is 11.72, while trailing earnings are $2.22 per share.

American International Group, Inc. (NYSE:AIG): AIG shares recently traded at $25.00, up $1, or 4.17%. They have traded in a 52-week range of $19.18 to $60.64. Volume today was 4,303,882 shares versus a 3-month average volume of 5,991,400 shares. The company’s trailing P/E is 5.68, while trailing earnings are $4.41 per share.

Prudential Financial, Inc. (NYSE:PRU): PRU shares recently traded at $53.71, up $1.45, or 2.77%. They have traded in a 52-week range of $42.45 to $67.52. Volume today was 1,914,399 shares versus a 3-month average volume of 4,891,700 shares. The company’s trailing P/E is 8.38, while trailing earnings are $6.41 per share.

MetLife, Inc. (NYSE:MET): MET shares recently traded at $34.38, up $1.12, or 3.37%. They have traded in a 52-week range of $25.61 to $48.72. Volume today was 6,791,467 shares versus a 3-month average volume of 10,950,900 shares. The company’s trailing P/E is 6.43, while trailing earnings are $5.34 per share.

To contact the reporter on this story: Damien Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com