The Steadfast Group Ltd (ASX: SDF) share price has fallen 8.6% to $2.80 at the start of the trading week – slipping from a near 52-week high of $3.07 to close off November 9.
The insurance stock spent late October and early November gaining ground after the release of its AGM address and FY19 guidance, but much of these gains have been erased today in early trade.
It’s unclear what the sharp dip in Steadfast’s share price is related to, but other insurance providers are also falling into the red today, albeit it not as dramatically as Steadfast.
Suncorp Group Ltd (ASX: SUN) shares are down 0.5% to $14.05 at the time of writing, with Insurance Australia Group Ltd (ASX: IAG) shares down 0.5% to $7.18 while QBE Insurance Group Ltd (ASX: QBE) holds steady at $11.49.
All insurance providers have faced a difficult time in the past six months as Australian Competition and Consumer Commission (ACCC) reports into insurance rates have put pressure on margins.
But back in October, Steadfast forecast better than expected first-quarter FY19 organic growth driven by single-digit price rises by insurers, with a strong pipeline of acquisitions.