Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Insurance 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 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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3 Undervalued Insurance Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Insurance industry for Thursday, September 11, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Insurance 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.

Chubb Limited’s Value Grade

Value Grade:

Chubb Limited provides insurance and reinsurance products worldwide. The company operates through six segments: North America Commercial P&C; Insurance, North America Personal P&C; Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. The company provides package policies, property and general liability, workers' compensation, automobile, umbrella, financial lines, professional and management liability, environmental, international coverages, property and casualty, commercial marine, and risk management products and services. It also offers homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, cyber, and recreational marine insurance and services. In addition, the company provides multiple peril crop insurance and crop-hail insurance for farm, ranch, and specialty property and casualty, and commercial agriculture products; and property insurance products, including traditional commercial fire coverage, as well as energy industry-related, construction, and other technical coverages; personal accident and supplemental medical coverages, such as accidental death, business/holiday travel, specified disease, disability, medical and hospital indemnity, and income protection; and professional indemnity, cyber, surety, aviation, political risk, and specialty personal lines products. Further, the company offers property catastrophe reinsurance, traditional and specialty P&C; reinsurance; and protection and savings products, which includes whole life, universal life, unit linked contracts, endowment plans, individual and group term life, dental, critical illness, dementia, hospital cash, personal accident, credit life, and group employee benefits. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was incorporated in 1985 and is headquartered in Zurich, Switzerland.

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.

Chubb Limited has a Value Score of 76, which is considered to be undervalued.

When you look at Chubb Limited’s price-to-sales ratio at 1.94 compared to the industry median at 1.05, this company has a higher price relative to revenue compared to its peers. This could make Chubb Limited’s stock less attractive for value investors.

Chubb Limited’s price-earnings ratio is 12.20 compared to the industry median at 14.20. This means it has a lower share price relative to earnings compared to its peers. This could make Chubb Limited more attractive for value investors.

Now, let’s assess Chubb Limited’s EV/EBITDA ratio, also known as enterprise multiple. At 10.5, when compared to the industry median of 8.8, the company may be considered overvalued 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. Chubb Limited’s shareholder yield is higher than its industry median ratio of 0.60%. 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. Chubb Limited’s price-to-book ratio is higher than its industry median ratio of 1.57. This could make Chubb Limited less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Chubb Limited’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Chubb Limited’s price-to-free-cash-flow ratio is higher than its industry median ratio of 8.90. This could make Chubb Limited fairly attractive because the higher P/FCF ratio indicates that Chubb Limited 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.

International General Insurance Holdings Ltd.’s Value Grade

Value Grade:

International General Insurance Holdings Ltd. engages in the provision of specialty insurance and reinsurance solutions worldwide. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It is involved in underwriting a portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, marine, and treaty reinsurance. The company was founded in 2001 and is based in Amman, Jordan.

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 Insurance Holdings Ltd. has a Value Score of 70, which is considered to be undervalued.

International General Insurance Holdings Ltd.’s price-earnings ratio is 8.8 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 International General Insurance Holdings Ltd. more attractive for value investors.

International General Insurance Holdings Ltd.’s price-to-book ratio is lower than its peers. This could make International General Insurance Holdings Ltd. more attractive for value investors when compared to the industry median at 1.57.

You can read more about International General Insurance 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.

Mercury General Corporation’s Value Grade

Value Grade:

Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance products. Its automobile insurance products include collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products comprise dwelling, liability, personal property, and other coverages. The company sells its policies through a network of independent agents and insurance agencies, as well as directly through internet sales portals in Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia. Mercury General Corporation was incorporated in 1961 and is headquartered in Los Angeles, California.

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.

Mercury General Corporation has a Value Score of 88, which is considered to be undervalued.

Mercury General Corporation’s price-earnings ratio is 11.1 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 Mercury General Corporation more attractive for value investors.

Mercury General Corporation’s price-to-book ratio is lower than its peers. This could make Mercury General Corporation more attractive for value investors when compared to the industry median at 1.57.

You can read more about Mercury General 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.

Other Insurance 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 stocks as well as other industrys.

Choosing Which of the 3 Best Insurance 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.

• Chubb Limited stock has a Value Grade of B.
• International General Insurance Holdings Ltd. stock has a Value Grade of B.
• Mercury General Corporation stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 undervalued stocks in the Insurance 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 Stocks

Want to learn more about Insurance 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.

• 3 Undervalued Insurance Stocks for Thursday, September 11
• Which Is a Better Investment, Hamilton Insurance Group, Ltd. or Kinsale Capital Group, Inc. Stock?
• Which Is a Better Investment, Kinsale Capital Group, Inc. or SiriusPoint Ltd. Stock?
• 7 Undervalued Insurance Stocks for Wednesday, September 10

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.