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Insurance industry resilient TSR does not meet investors’ cost of equity: BCG

September 5, 2023

At 8%, the insurance industry total shareholder return (TSR) demonstrates resilience compared with other sectors since the onset of the pandemic, but nonetheless falls short of meeting investors’ cost of equity, continuing a trend of recent years, according to BCG analysts.

The five-year annual TSR for insurance from 2018 through 2022 is an underwhelming 3.9% and compares with an all-industry average of 6.6%, analysts noted. The global insurance industry’s market capitalization remained stagnant at about $2.2 trillion over this period.

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