Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Insurance - Property & Casualty industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Latest Insurance - Property & Casualty Stock News

Before choosing which top Insurance - Property & Casualty stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

The sub-industry of property and casualty insurance has a promising fundamental outlook. Despite some inflation in claim costs brought on by pandemics and some uncertainty regarding the size of claims resulting from the conflict in Ukraine, industry profitability is expected to increase in 2022 due to an anticipated decrease in the number of significant global catastrophe claims that have plagued most insurers in recent years. However, it's likely that these losses will force the insurance industry to release adequate extra underwriting capacity, leading to firmer rates across many lines of coverage. The state of the global and domestic economies overall, as well as how well they recover from the recession brought on by COVID19, will determine how much demand there is for specific types of insurance products, particularly those in the commercial lines sector. The sector has $989 billion in surplus (or capital) from policyholders as of September 30, 2021 (the most recent date known), which helped to fund its $701 billion written premium base. Less than a 1:1 ratio was being used by the sector to leverage its capital. The industry has "excess" capital of close to $600 billion by assuming a historical (and somewhat theoretical) benchmark 2:1 leverage of capital. Insurers will be able to take advantage of higher rates and a rise in coverage demand during an economic recovery thanks to this "extra" capital (or underwriting capacity). The S&P Property & Casualty Insurance Index increased by 8.6% year-to-date until March 18, 2022, while the S&P 1500 Index fell by 6.2%. The S&P Property & Casualty Insurance Index increased by 16% in 2021, while the S&P 1500 Index increased by 26.7%.

Why Focus on Undervalued Insurance - Property & Casualty Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Insurance - Property & Casualty Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Insurance - Property & Casualty industry for Tuesday, February 06, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Insurance - Property & Casualty industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

American International Group Inc’s Value Grade

Value Grade:

American International Group, Inc. is a global insurance company. The Company provides a range of property and casualty insurance, life insurance, retirement solutions, and other financial services to customers in over 70 countries and jurisdictions. Its diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. It operates through three segments: General Insurance, Life and Retirement, and Other Operations. Its General Insurance segment consists of two segments: North America and International. Its Life and Retirement segment consists of four segments: Individual Retirement, Group Retirement, Life Insurance and Institutional Markets. Its North America and International segments consist of two product categories: Commercial Lines, which consists of Liability, Financial Lines, Property and Global Specialty, and Personal Insurance, which consists of Personal Lines, and Accident and Health.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

American International Group Inc has a Value Score of 83, which is considered to be undervalued.

When you look at American International Group Inc’s price-to-sales ratio at 1.01 compared to the industry median at 1.20, this company has a lower price relative to revenue compared to its peers. This could make American International Group Inc’s stock more attractive for value investors.

American International Group Inc’s price-earnings ratio is 13.19 compared to the industry median at 12.48. This means it has a higher share price relative to earnings compared to its peers. This could make American International Group Inc less attractive for value investors.

Now, let’s assess American International Group Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 4.4, when compared to the industry median of 6.5, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. American International Group Inc’s shareholder yield is higher than its industry median ratio of 2.84%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. American International Group Inc’s price-to-book ratio is lower than its industry median ratio of 1.32. This could make American International Group Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at American International Group Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. American International Group Inc’s price-to-free-cash-flow ratio is higher than its industry median ratio of 9.15. This could make American International Group Inc less attractive because the higher P/FCF ratio indicates that American International Group Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Horace Mann Educators Corporation’s Value Grade

Value Grade:

Horace Mann Educators Corporation is an insurance holding company. The Company markets and underwrites individual and group insurance and financial solutions for the educational community. Its segments include Property & Casualty, Life & Retirement, Supplemental & Group Benefits and Corporate & Other. The Property & Casualty segment's primary insurance products include private passenger auto insurance and residential home insurance. Its property coverage includes both homeowners and renters policies. The Life & Retirement segment markets tax-qualified fixed, fixed indexed and variable annuities; the Horace Mann Retirement Advantage open architecture platform, and traditional term and whole life insurance products. The Supplemental & Group Benefits offers employer-sponsored products, including accident, critical illness, term life, and long-term disability, as well as worksite direct products, including supplemental heart, supplemental cancer, and supplemental disability.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Horace Mann Educators Corporation has a Value Score of 70, which is considered to be undervalued.

Horace Mann Educators Corporation’s price-to-book ratio is lower than its peers. This could make Horace Mann Educators Corporation more attractive for value investors when compared to the industry median at 1.32.

You can read more about Horace Mann Educators Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

MGIC Investment Corp’s Value Grade

Value Grade:

MGIC Investment Corporation is a holding company. The Company, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services. The Company's mortgage insurance product offers primary insurance and pool insurance. Primary insurance provides mortgage default protection on individual loans and covers a percentage of the unpaid loan principal, delinquent interest, and certain expenses associated with the default and subsequent foreclosure on the mortgage or sale of the underlying property. Pool insurance is generally used as an additional credit enhancement for certain secondary market mortgage transactions. Pool insurance generally covers the amount of the loss on a defaulted mortgage loan that exceeds the claim payment under the primary coverage.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

MGIC Investment Corp has a Value Score of 80, which is considered to be undervalued.

MGIC Investment Corp’s price-earnings ratio is 7.7 compared to the industry median at 12.5. This means that it has a lower price relative to its earnings compared to its peers. This makes MGIC Investment Corp more attractive for value investors.

MGIC Investment Corp’s price-to-book ratio is higher than its peers. This could make MGIC Investment Corp less attractive for value investors when compared to the industry median at 1.32.

You can read more about MGIC Investment Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

NI Holdings Inc’s Value Grade

Value Grade:

NI Holdings, Inc. is the stock holding company of Nodak Insurance Company (Nodak Insurance). Nodak Insurance is a domestic property and casualty insurance company in North Dakota. The Company?s segments include Private Passenger Auto, Non-standard Auto, Home and Farm, Crop and Commercial. Private Passenger Auto insurance provides protection against liability for bodily injury and property damage arising from automobile accidents and protection against loss from damage to automobiles owned by the insured. Non-standard Auto insurance provides liability coverage. Home and Farm provides coverage for damage buildings, equipment, and contents for a range of perils, including fire, lightning, wind, hail and theft. The Company?s Crop segment offers hail and multi-peril crop insurance. Its hail insurance is a private insurance product designed to provide protection against losses to farmer?s crops due primarily to hail damage. Its Commercial segment writes commercial multi-peril policies.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

NI Holdings Inc has a Value Score of 85, which is considered to be undervalued.

NI Holdings Inc’s price-to-book ratio is higher than its peers. This could make NI Holdings Inc less attractive for value investors when compared to the industry median at 1.32.

You can read more about NI Holdings Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Old Republic International Corp’s Value Grade

Value Grade:

Old Republic International Corporation is a holding company. The Company is engaged in the business of insurance underwriting and related services. It operates through three segments: General Insurance (property and liability insurance), Title Insurance, and Republic Financial Indemnity Group (RFIG) Run-off. Its General Insurance provides property and liability insurance primarily to commercial clients. Title Insurance consists of the issuance of policies to real estate purchasers and investors based upon searches of the public records which contain information concerning interests in real property. The policies insure against losses arising out of defects, liens, and encumbrances. RFIG Run-off segment offers private mortgage insurance, which protects mortgage lenders and investors from default-related losses on residential mortgage loans made primarily to homebuyers. The RFIG Run-off mortgage guaranty operations insures only first mortgage loans, primarily on residential properties.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Old Republic International Corp has a Value Score of 75, which is considered to be undervalued.

Old Republic International Corp’s price-earnings ratio is 13.1 compared to the industry median at 12.5. This means that it has a higher price relative to its earnings compared to its peers. This makes Old Republic International Corp less attractive for value investors.

Old Republic International Corp’s price-to-book ratio is lower than its peers. This could make Old Republic International Corp fairly attractive for value investors when compared to the industry median at 1.32.

You can read more about Old Republic International Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

ProAssurance Corporation’s Value Grade

Value Grade:

ProAssurance Corporation is an insurance holding company. Its segments include Specialty Property and Casualty (Specialty P&C;), Workers' Compensation Insurance, Segregated Portfolio Cell Reinsurance, Lloyd's Syndicates and Corporate. The Specialty P&C; segment include professional liability insurance and medical technology liability insurance. Its professional liability insurance is primarily comprised of medical professional liability products offered to healthcare providers and institutions. It also offers professional liability insurance to attorneys and their firms. The Workers' Compensation Insurance segment includes workers' compensation insurance products, which are provided primarily to employers. This segments product includes guaranteed cost policies, policyholder dividend policies, deductible policies and alternative market solutions. The Segregated Portfolio Cell Reinsurance segment includes the results of SPCs at Inova Re and Eastern Re, its Cayman Islands SPC operations.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

ProAssurance Corporation has a Value Score of 94, which is considered to be undervalued.

ProAssurance Corporation’s price-to-book ratio is higher than its peers. This could make ProAssurance Corporation less attractive for value investors when compared to the industry median at 1.32.

You can read more about ProAssurance Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

White Mountains Insurance Group Ltd’s Value Grade

Value Grade:

White Mountains Insurance Group, Ltd. is a financial service holding company. The Company is engaged in the acquisition of businesses and assets in the insurance, financial services and related sectors, operating these businesses and assets through its subsidiaries and disposing of these businesses and assets. The Company?s segments include HG Global/BAM, Ark and Kudu. The Company conducts its business primarily in four areas: municipal bond insurance, property and casualty insurance and reinsurance, capital solutions for asset and wealth management firms and other operations. Its municipal bond insurance business is conducted through its subsidiary HG Global Ltd. Its property and casualty insurance and reinsurance business is conducted through its subsidiary Ark Insurance Holdings Limited and its subsidiaries. The Company, through its subsidiary, Kudu Investment Management, LLC and its subsidiaries, provides capital solutions for asset and wealth management firms .

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

White Mountains Insurance Group Ltd has a Value Score of 88, which is considered to be undervalued.

White Mountains Insurance Group Ltd’s price-earnings ratio is 8.7 compared to the industry median at 12.5. This means that it has a lower price relative to its earnings compared to its peers. This makes White Mountains Insurance Group Ltd more attractive for value investors.

White Mountains Insurance Group Ltd’s price-to-book ratio is higher than its peers. This could make White Mountains Insurance Group Ltd less attractive for value investors when compared to the industry median at 1.32.

You can read more about White Mountains Insurance Group Ltd’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Insurance - Property & Casualty Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Insurance - Property & Casualty stocks as well as other industrys.

Choosing Which of the 7 Best Insurance - Property & Casualty Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• American International Group Inc stock has a Value Grade of A.
• Horace Mann Educators Corporation stock has a Value Grade of B.
• MGIC Investment Corp stock has a Value Grade of B.
• NI Holdings Inc stock has a Value Grade of A.
• Old Republic International Corp stock has a Value Grade of B.
• ProAssurance Corporation stock has a Value Grade of A.
• White Mountains Insurance Group Ltd stock has a Value Grade of A.

Now that you have a bit more background about each of the 7 undervalued stocks in the Insurance - Property & Casualty industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Insurance - Property & Casualty Stocks

Want to learn more about Insurance - Property & Casualty stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Insurance - Property & Casualty Stocks for Tuesday, February 06
• 7 Undervalued Insurance - Property & Casualty Stocks for Monday, February 05
• What You Need to Know About Cna Financial Corp's Q4 Earnings
• Why Cna Financial Corp’s (CNA) Stock Is Up 7.16%

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