November started off brilliantly for the Insurance Australia Group Ltd (ASX: IAG) share price, but it soon took a sharp turn.
Stock in the insurance giant launched to a 52-week high on 2 November – peaking at $5.09. However, it soon handed back the gains that brought it there, falling to a low of $4.69 earlier this week.
After ending October at $4.90, the IAG share price tumbled 2.45% to finish November at $4.78.
For comparison, the S&P/ASX 200 Index (ASX: XJO) lifted 6.13% last month. Meanwhile, the company's home sector, the S&P/ASX 200 Financials Index (ASX: XFJ), rose 1.14%.
So, what might have gone wrong for the IAG share price? Let's take a look.
Image source: Getty Images
What weighed on the IAG share price in November?
Interestingly, there's been no price-sensitive word from IAG to explain its share price's recent underperformance. Indeed, the last time the market heard from the company was amid its annual general meeting in late October.
Though, it's worth noting severe flooding continued in parts of New South Wales last month while South Australia and Victoria suffered extreme weather events.
The company said it received more than 4,000 claims from the events between 12 November and 22 November.
And more storms could be heading our way. The company warned Australia is entering its annual severe thunderstorm season this week, with a particular focus on the damage hail can cause.
Also interestingly, other ASX 200 insurance providers performed well over the month just been.
The QBE Insurance Group Ltd (ASX: QBE) share price lifted 5.15% last month while the Suncorp Group Ltd (ASX: SUN) share price rose 4.47%.
Still, the IAG share price is outperforming the broader market year to date despite its recent struggles. The stock has lifted 6.7% year to date and 7.7% over the last 12 months.
For comparison, the ASX 200 has slumped 3% since the start of 2022 and lifted 1% over the last 12 months.
