PGR

A 5.25% 10-year Treasury yield lets property and casualty insurers invest the premiums they hold at the best yields since 2002. Investors are selling financial stocks broadly, insurers included. Yet Travelers, Progressive and Allstate stand to earn more for as long as rates stay high.

30-year Treasury yields hitting near two-decade highs forces a repricing of long-duration assets — but P&C insurers holding short-duration float portfolios are quietly compounding into higher yields. As legacy 2-3% bonds mature and roll into 5%+ paper, investment income surges. Long large-cap US P&C insurers with high float-to-equity ratios.