Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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.

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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6 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 6 undervalued stocks in the Insurance - Property & Casualty industry for Monday, April 22, 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. (AIG) is a global insurance company. The Company provides insurance solutions that help businesses and individuals in approximately 190 countries and jurisdictions protect their assets and manage risks through AIG operations and network partners. The Company 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. Its individual retirement consists of fixed annuities, fixed index annuities and variable annuities.

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 84, which is considered to be undervalued.

When you look at American International Group Inc’s price-to-sales ratio at 1.11 compared to the industry median at 1.34, 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 14.86 compared to the industry median at 14.22. 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 5.6, when compared to the industry median of 6.4, 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 2.37%. 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 1.27. 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 9.44. 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.

Essent Group Ltd’s Value Grade

Value Grade:

Essent Group Ltd. is a holding company. The Company, through its wholly owned subsidiaries, offers private mortgage insurance, reinsurance, risk management products and title insurance and settlement services to mortgage lenders, borrowers, and investors to support homeownership. In addition to offering mortgage insurance, it provides contract underwriting services on a limited basis through CUW Solutions, LLC. It also offers mortgage-related insurance and reinsurance through its Bermuda-based subsidiary, Essent Reinsurance Ltd. It provides private capital to mitigate mortgage credit risk, allowing lenders to make additional mortgage financing available to prospective homeowners. Its products and services include mortgage insurance, contract underwriting, and Bermuda-Based insurance and reinsurance. It offers two types of private mortgage insurance, namely primary and pool. Its subsidiaries also include Agents National Title Holding Company and Boston National Holdings LLC.

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.

Essent Group Ltd has a Value Score of 73, which is considered to be undervalued.

Essent Group Ltd’s price-earnings ratio is 8.2 compared to the industry median at 14.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Essent Group Ltd more attractive for value investors.

Essent Group Ltd’s price-to-book ratio is higher than its peers. This could make Essent Group Ltd less attractive for value investors when compared to the industry median at 1.27.

You can read more about Essent 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.

Global Indemnity Group LLC’s Value Grade

Value Grade:

Global Indemnity Group, LLC provides both admitted and non-admitted specialty property and specialty casualty insurance coverages and individual policyholder coverages in the United States. The Company operates through three segments: Commercial Specialty, Reinsurance Operations and Exited Lines. The Company?s Commercial Specialty segment distributes specialty property and casualty insurance products and operates predominantly in the excess and surplus lines, or non-admitted, marketplace. The Reinsurance Operations segment writes casualty treaties as well as individual excess policies. The Exited Lines includes specialty personal lines property and property and casualty products, such as manufactured home, dwelling, motorcycle, watercraft, certain homeowners? business, property brokerage, property and catastrophe reinsurance treaties, several smaller casualty lines, and the farm, ranch and equine business.

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.

Global Indemnity Group LLC has a Value Score of 89, which is considered to be undervalued.

Global Indemnity Group LLC’s price-earnings ratio is 17.8 compared to the industry median at 14.2. This means that it has a higher price relative to its earnings compared to its peers. This makes Global Indemnity Group LLC less attractive for value investors.

Global Indemnity Group LLC’s price-to-book ratio is higher than its peers. This could make Global Indemnity Group LLC less attractive for value investors when compared to the industry median at 1.27.

You can read more about Global Indemnity Group LLC’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 wholly owned 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 and Other 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 81, which is considered to be undervalued.

MGIC Investment Corp’s price-earnings ratio is 8.0 compared to the industry median at 14.2. 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 1.27.

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.

ProAssurance Corporation’s Value Grade

Value Grade:

ProAssurance Corporation is a specialty insurer with expertise in healthcare professional liability, products liability for medical technology and life sciences, legal professional liability, and workers' compensation insurance. The Company's segments include Specialty P&C;, Workers' Compensation Insurance, Segregated Portfolio Cell Reinsurance and Corporate. The Specialty Property and Casualty (Specialty P&C;) segment is focused on professional liability insurance and medical technology liability insurance. Professional liability insurance is offered to healthcare providers and institutions and, to a lesser extent, to attorneys and their firms. The Workers' Compensation Insurance segment offers workers' compensation products in approximately 19 states in the East, South and Midwest regions of the continental United States. The Segregated Portfolio Cell Reinsurance segment includes the results of SPCs at Inova Re and Eastern Re, the Company's 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 97, 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 1.27.

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.

Selective Insurance Group Inc’s Value Grade

Value Grade:

Selective Insurance Group, Inc. is a holding company, which owns ten property and casualty insurance subsidiaries that sell products and services only in the United States. The Company's segments include Standard Commercial Lines, Standard Personal Lines, E&S; Lines and Investments. The Standard Commercial Lines segment includes property and casualty insurance products and services to commercial enterprises, typically businesses, non-profit organizations, and local government agencies. The Standard Personal Lines segment consists of property and casualty insurance products and services, including flood insurance coverage sold through the Write Your Own program of the National Flood Insurance Program. The E&S; Lines segment consists of property and casualty insurance products and services to commercial customers unable to obtain coverage in the standard marketplace. The Investment segment invests insurance premiums and amounts generated through its capital management strategies.

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.

Selective Insurance Group Inc has a Value Score of 64, which is considered to be undervalued.

Selective Insurance Group Inc’s price-earnings ratio is 17.6 compared to the industry median at 14.2. This means that it has a higher price relative to its earnings compared to its peers. This makes Selective Insurance Group Inc less attractive for value investors.

Selective Insurance Group Inc’s price-to-book ratio is lower than its peers. This could make Selective Insurance Group Inc more attractive for value investors when compared to the industry median at 1.27.

You can read more about Selective Insurance Group 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.

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 6 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.
• Essent Group Ltd stock has a Value Grade of B.
• Global Indemnity Group LLC stock has a Value Grade of A.
• MGIC Investment Corp stock has a Value Grade of A.
• ProAssurance Corporation stock has a Value Grade of A.
• Selective Insurance Group Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Insurance - Property & Casualty Stocks for Monday, April 22
• 7 Undervalued Insurance - Property & Casualty Stocks for Friday, April 19
• Why Roadzen Inc’s (RDZN) Stock Is Down 4.30%
• 3 Undervalued Insurance - Property & Casualty Stocks for Thursday, April 18

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