Dumping Coal Can Be Good for Insurance Company Stock
This content was published on February 2, 2021 - 11:00
February 2, 2021 - 11:00
(Bloomberg)
As far as climate groups like the Sunrise Project are concerned, getting insurers out of the coal underwriting business is the most important thing they can do. No more insurance, no more coal.
Itâs something Sunrise has been pushing for years. But while itâs happening in Europe, it hasnât caught on in America.
Analysts at Societe Generale SA published a report about European insurers and reinsurers that, for the first time, includes a specific ESG input for stock valuations. It primarily reflects each insurerâs stance on coal, the dirtiest of atmosphere-wrecking fossil fuels. The analysts determined that an insurerâs position on coal underwriting and investments can have an effect on its valuation ranging from -3% to +9%.