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 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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6 Undervalued Insurance 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 industry for Tuesday, December 02, 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.

The Allstate Corporation’s Value Grade

Value Grade:

The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. It operates in five segments: Allstate Protection; Run-off Property-Liability; Protection Services; Allstate Health and Benefits; and Corporate and Other. The company offers private passenger auto, homeowners, personal lines, and commercial insurance products through agents, contact centers, and online; and property and casualty insurance products. It also provides consumer product protection plans, device and mobile data collection services, and analytic solutions using automotive telematics information, roadside assistance, and protection plans; and insurance products, such as identity protection and restoration through Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity, and Allstate Identity Protection brands. In addition, the company offers life, accident, critical illness, hospital indemnity, short-term disability, and other health insurance products; self-funded stop-loss and fully insured group health products to employers; medicare supplement, ancillary products, and short-term medical insurance to individuals through independent agents, owned agencies, benefits brokers, and Allstate exclusive agents. Further, it offers automotive protection; vehicle service contracts, guaranteed asset protection, road hazard tires and wheels, and paintless dent repair protection; and roadside assistance, mobility data collection services, and analytic solutions using automotive telematics information, identity theft protection, and remediation services. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, Illinois.

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.

The Allstate Corporation has a Value Score of 90, which is considered to be undervalued.

When you look at The Allstate Corporation’s price-to-sales ratio at 0.83 compared to the industry median at 1.10, this company has a lower price relative to revenue compared to its peers. This could make The Allstate Corporation’s stock more attractive for value investors.

The Allstate Corporation’s price-earnings ratio is 6.80 compared to the industry median at 13.90. This means it has a lower share price relative to earnings compared to its peers. This could make The Allstate Corporation more attractive for value investors.

Now, let’s assess The Allstate Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 6.4, when compared to the industry median of 9.5, 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. The Allstate Corporation’s shareholder yield is higher than its industry median ratio of 1.10%. 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. The Allstate Corporation’s price-to-book ratio is higher than its industry median ratio of 1.58. This could make The Allstate Corporation less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at The Allstate Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. The Allstate Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 9.10. This could make The Allstate Corporation more attractive because the lower P/FCF ratio indicates that The Allstate Corporation 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.

CNA Financial Corporation’s Value Grade

Value Grade:

CNA Financial Corporation, an insurance holding company, primarily provides commercial property and casualty insurance products in the United States and internationally. It operates through Specialty, Commercial, International, and Life & Group segments. The company offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, errors and omissions, employment practices, fiduciary, and fidelity and cyber coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products. It also provides property, marine, boiler, and machinery coverage insurance products; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, umbrella, and excess and surplus coverages; specialized loss-sensitive insurance programs and total risk management services; and run-off long term care policies. The company was founded in 1853 and is based in Chicago, Illinois. CNA Financial Corporation operates as a subsidiary of Loews Corporation.

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.

CNA Financial Corporation has a Value Score of 92, which is considered to be undervalued.

CNA Financial Corporation’s price-earnings ratio is 12.6 compared to the industry median at 13.9. This means that it has a lower price relative to its earnings compared to its peers. This makes CNA Financial Corporation more attractive for value investors.

CNA Financial Corporation’s price-to-book ratio is higher than its peers. This could make CNA Financial Corporation less attractive for value investors when compared to the industry median at 1.58.

You can read more about CNA Financial 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.

Donegal Group Inc.’s Value Grade

Value Grade:

Donegal Group Inc., an insurance holding company, provides commercial and personal lines of property and casualty coverages. It operates through three segments: Investment Function, Commercial Lines of Insurance, and Personal Lines of Insurance. The company offers 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 for commercial automobile; protection to businesses against perils combining liability and physical damage coverages; and benefits to employees for injuries sustained during employment. It also 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 for private passenger automobile; and coverage for damage to residences and their contents from a range of perils, including fire, lightning, windstorm, and theft. The company markets its insurance products primarily to Mid-Atlantic, Midwest, Southern, and Southwestern states through a network of independent insurance agents. The company was incorporated in 1986 and is based in Marietta, Pennsylvania. Donegal Group Inc. is a subsidiary of Donegal Mutual Insurance 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.

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

Donegal Group Inc.’s price-earnings ratio is 8.5 compared to the industry median at 13.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Donegal Group Inc. more attractive for value investors.

Donegal Group Inc.’s price-to-book ratio is higher than its peers. This could make Donegal Group Inc. less attractive for value investors when compared to the industry median at 1.58.

You can read more about Donegal 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.

F&G; Annuities & Life, Inc.’s Value Grade

Value Grade:

F&G; Annuities & Life, Inc., together with its subsidiaries, provides annuity and life insurance products in the United States. It offers fixed indexed annuities registered index-linked annuities, and multi-year guarantee annuities; immediate annuities; indexed universal life insurance; pension risk transfer solutions; and institutional funding agreements. The company distributes its products through independent agents, banks, and broker-dealers to retail annuity and life customers, as well as institutional clients. The company was founded in 1959 and is headquartered in Des Moines, Iowa. F&G; Annuities & Life, Inc. is a subsidiary of Fidelity National Financial, Inc.

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.

F&G; Annuities & Life, Inc. has a Value Score of 92, which is considered to be undervalued.

F&G; Annuities & Life, Inc.’s price-earnings ratio is 9.4 compared to the industry median at 13.9. This means that it has a lower price relative to its earnings compared to its peers. This makes F&G; Annuities & Life, Inc. more attractive for value investors.

F&G; Annuities & Life, Inc.’s price-to-book ratio is higher than its peers. This could make F&G; Annuities & Life, Inc. less attractive for value investors when compared to the industry median at 1.58.

You can read more about F&G; Annuities & Life, 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.

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 86, which is considered to be undervalued.

Mercury General Corporation’s price-earnings ratio is 11.7 compared to the industry median at 13.9. 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 1.58.

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.

Tiptree Inc.’s Value Grade

Value Grade:

Tiptree Inc., through its subsidiaries, provides specialty insurance products and related services in the United States and Europe. It operates through two segments, Insurance and Mortgage. The company offers commercial lines insurance products, including professional liability, general liability, contractual liability protection, property and other short-tail, and alternative risks insurance products; and personal lines insurance products, such as credit protection surrounding loan payments. It also provides auto warranty programs, including vehicle service contracts, GAP, and other ancillary products; consumer goods warranty programs, such as mobile devices, consumer electronics, appliances, furniture; and premium or warranty contract financing services, lead generation support, and business process outsourcing services. In addition, the company offers mortgage loans for institutional investors; and asset management and advisory services. It markets its products through independent insurance agents, consumer finance companies, online retailers, auto dealers, brokers, and regional big box retailers. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was founded in 1978 and is based in Greenwich, Connecticut.

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.

Tiptree Inc. has a Value Score of 87, which is considered to be undervalued.

Tiptree Inc.’s price-earnings ratio is 16.4 compared to the industry median at 13.9. This means that it has a higher price relative to its earnings compared to its peers. This makes Tiptree Inc. less attractive for value investors.

Tiptree Inc.’s price-to-book ratio is higher than its peers. This could make Tiptree Inc. less attractive for value investors when compared to the industry median at 1.58.

You can read more about Tiptree 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 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 6 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.

• The Allstate Corporation stock has a Value Grade of A.
• CNA Financial Corporation stock has a Value Grade of A.
• Donegal Group Inc. stock has a Value Grade of A.
• F&G; Annuities & Life, Inc. stock has a Value Grade of A.
• Mercury General Corporation stock has a Value Grade of A.
• Tiptree Inc. stock has a Value Grade of A.

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

• 6 Undervalued Insurance Stocks for Tuesday, December 02
• Is Chubb Limited (CB) Overvalued?
• Is The Progressive Corporation (PGR) Overvalued?
• 5 Undervalued Insurance Stocks for Monday, December 01

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.