The insurance business is a relatively stable industry within the broader economy, and insurance revenue and profits typically don't fluctuate significantly with the economic cycle. In addition to selling policies, insurance companies profit by investing the money they take in.
Elevated inflation levels have most investors anticipating interest rates will rise aggressively in coming quarters, which could be good news for insurance stocks. Rising interest rates may help insurance stocks earn more income on their debt, and insurance stock multiples have historically expanded as interest rates rise.
