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.

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 Friday, September 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. (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 86, which is considered to be undervalued.

When you look at American International Group Inc’s price-to-sales ratio at 1.36 compared to the industry median at 1.36, this company has a higher price relative to revenue compared to its peers. This could make American International Group Inc’s stock fairly attractive for value investors.

American International Group Inc’s price-earnings ratio is 18.03 compared to the industry median at 14.08. 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 5.0, 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 1.49%. 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 1.53. 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 9.00. 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.

Fidelity National Financial Inc’s Value Grade

Value Grade:

Fidelity National Financial, Inc. is a title insurance company. The Company provides title insurance and transaction services to the real estate and mortgage industries. It has three segments: Title, F&G;, and Corporate and Other. Title segment consists of the operations of its title insurance underwriters and related businesses, which provide title insurance and escrow and other title-related services, including trust activities, trustee sales guarantees, and home warranty products. This segment also includes its transaction services business, which includes other title-related services used in the production and management of mortgage loans, including mortgage loans that experience default. F&G; segment primarily consists of operations of its annuities and life insurance related businesses. This segment issues a portfolio of annuity and life insurance products through its retail distribution channels. Corporate and Other segment consists of the operations of the parent holding company.

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.

Fidelity National Financial Inc has a Value Score of 76, which is considered to be undervalued.

Fidelity National Financial Inc’s price-earnings ratio is 17.6 compared to the industry median at 14.1. This means that it has a higher price relative to its earnings compared to its peers. This makes Fidelity National Financial Inc less attractive for value investors.

Fidelity National Financial Inc’s price-to-book ratio is lower than its peers. This could make Fidelity National Financial Inc more attractive for value investors when compared to the industry median at 1.53.

You can read more about Fidelity National Financial 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.

International General Insuranc Hldgs Ltd’s Value Grade

Value Grade:

International General Insurance Holdings Ltd is a Jordan-based commercial insurance and reinsurance company. It has a worldwide portfolio of energy, property, general aviation, construction and engineering, ports and terminals, marine cargo, marine trades, contingency, political violence, financial institutions, general third-party liability, legal expenses, reinsurance treaty business, among others. Its segments include Specialty Long-tail, Specialty Short-tail and Reinsurance. Its Specialty Long-tail segment includes casualty business, financial institutions line of business, marine liability line of business, and inherent defects insurance line of business. Its Specialty Short-tail segment includes energy, property, construction and engineering, political violence, ports and terminals, marine cargo, contingency and general aviation lines of business. Reinsurance segment includes inward reinsurance treaty 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.

International General Insuranc Hldgs Ltd has a Value Score of 76, which is considered to be undervalued.

International General Insuranc Hldgs Ltd’s price-earnings ratio is 7.2 compared to the industry median at 14.1. This means that it has a lower price relative to its earnings compared to its peers. This makes International General Insuranc Hldgs Ltd more attractive for value investors.

International General Insuranc Hldgs Ltd’s price-to-book ratio is higher than its peers. This could make International General Insuranc Hldgs Ltd less attractive for value investors when compared to the industry median at 1.53.

You can read more about International General Insuranc Hldgs 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.

James River Group Holdings Ltd’s Value Grade

Value Grade:

James River Group Holdings, Ltd. is a Bermuda-based insurance holding company that owns and operates a group of specialty insurance companies. It operates through two specialty property-casualty insurance segments: Excess and Surplus Lines and Specialty Admitted Insurance. The Excess and Surplus Lines segment offers excess and surplus commercial lines liability and property insurance in every United States state, the District of Columbia, Puerto Rico and the United States Virgin Islands through James River Insurance and its wholly owned subsidiary, James River Casualty. The Specialty Admitted Insurance segment focuses on niche classes within the standard insurance markets with a primary focus on fronting business. Through Falls Lake National and its subsidiaries, it has admitted licenses and the authority to write excess and surplus lines insurance in 50 states and the District of Columbia and distributes through a variety of sources, including program administrators and MGAs.

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.

James River Group Holdings Ltd has a Value Score of 99, which is considered to be undervalued.

James River Group Holdings Ltd’s price-earnings ratio is 3.8 compared to the industry median at 14.1. This means that it has a lower price relative to its earnings compared to its peers. This makes James River Group Holdings Ltd more attractive for value investors.

James River Group Holdings Ltd’s price-to-book ratio is higher than its peers. This could make James River Group Holdings Ltd less attractive for value investors when compared to the industry median at 1.53.

You can read more about James River Group Holdings 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.

NI Holdings Inc’s Value Grade

Value Grade:

NI Holdings, Inc. is an insurance holding company. The Company is the stock holding company of Nodak Insurance Company (Nodak Insurance). Nodak Insurance is a domestic property and casualty insurance company. The Company’s segments include private passenger auto insurance, non-standard auto insurance, home and farm insurance, crop insurance, commercial insurance, and all other. The private passenger auto insurance segment writes private passenger auto insurance to provide protection against liability for bodily injury and property damage arising from automobile accidents as well as protection against loss from damage to automobiles owned by the insured. The non-standard auto insurance segment writes non-standard auto insurance. The home and farm insurance segment writes homeowners and farmowners policies. The crop insurance segment offers crop hail and multi-peril crop insurance policies. The commercial insurance 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 68, which is considered to be undervalued.

NI Holdings Inc’s price-earnings ratio is 50.8 compared to the industry median at 14.1. This means that it has a higher price relative to its earnings compared to its peers. This makes NI Holdings Inc less attractive for value investors.

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 1.53.

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.

HG Holdings Inc’s Value Grade

Value Grade:

HG Holdings, Inc. is engaged in the business of providing title insurance and tile agency services. The Company's segments include title insurance, real estate, reinsurance, and management services. The title insurance segment issues title insurance policies and provides title agency services for residential and commercial real estate transactions. This segment also provides closing and/or escrow services to facilitate real estate transactions. The real estate segment is engaged in rental real estate through its equity investment in HC Realty. The management services segment, through its subsidiary, HG Managing Agency, LLC, is engaged in providing various management advisory services such as legal entity formation, licensure, regulatory approval, assumption of policies, and other general operational services. Its subsidiaries include National Consumer Title Insurance Company; National Consumer Title Group, LLC; Title Agency Ventures, LLC, and HG Managing Agency, 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.

HG Holdings Inc has a Value Score of 70, which is considered to be undervalued.

HG Holdings Inc’s price-to-book ratio is higher than its peers. This could make HG Holdings Inc less attractive for value investors when compared to the industry median at 1.53.

You can read more about HG 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.

Travelers Companies Inc’s Value Grade

Value Grade:

The Travelers Companies, Inc. is a provider of property casualty insurance for auto, home and business. The Company's segments include Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business Insurance segment offers a broad array of property and casualty insurance products and services. The Bond & Specialty Insurance segment offers surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services, primarily in the United States, and certain surety and specialty insurance products in Canada, the United Kingdom and the Republic of Ireland, as well as Brazil. The Personal Insurance segment offers a broad range of property and casualty insurance products and services covering individuals personal risks, primarily in the United States, as well as in Canada. The Company, through its subsidiary, Corvus Insurance Holdings, Inc., is a cyber insurance managing general underwriter.

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.

Travelers Companies Inc has a Value Score of 79, which is considered to be undervalued.

Travelers Companies Inc’s price-earnings ratio is 14.7 compared to the industry median at 14.1. This means that it has a higher price relative to its earnings compared to its peers. This makes Travelers Companies Inc less attractive for value investors.

Travelers Companies Inc’s price-to-book ratio is lower than its peers. This could make Travelers Companies Inc more attractive for value investors when compared to the industry median at 1.53.

You can read more about Travelers Companies 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 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.
• Fidelity National Financial Inc stock has a Value Grade of B.
• International General Insuranc Hldgs Ltd stock has a Value Grade of B.
• James River Group Holdings Ltd stock has a Value Grade of A.
• NI Holdings Inc stock has a Value Grade of B.
• HG Holdings Inc stock has a Value Grade of B.
• Travelers Companies Inc stock has a Value Grade of B.

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 Friday, September 06
• 7 Undervalued Insurance - Property & Casualty Stocks for Thursday, September 05
• Why Ambac Financial Group, Inc.’s (AMBC) Stock Is Down 5.00%
• 4 Undervalued Insurance - Property & Casualty Stocks for Wednesday, September 04

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