Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 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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5 Undervalued Insurance Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Insurance industry for Tuesday, December 23, 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.

Hamilton Insurance Group, Ltd.’s Value Grade

Value Grade:

Hamilton Insurance Group, Ltd., through its subsidiaries, operates as specialty insurance and reinsurance company in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial auto, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker’s compensation and employer’s liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial risks, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.

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.

Hamilton Insurance Group, Ltd. has a Value Score of 97, which is considered to be undervalued.

When you look at Hamilton Insurance Group, Ltd.’s price-to-sales ratio at 1.04 compared to the industry median at 1.13, this company has a lower price relative to revenue compared to its peers. This could make Hamilton Insurance Group, Ltd.’s stock more attractive for value investors.

Hamilton Insurance Group, Ltd.’s price-earnings ratio is 6.80 compared to the industry median at 14.30. This means it has a lower share price relative to earnings compared to its peers. This could make Hamilton Insurance Group, Ltd. more attractive for value investors.

Now, let’s assess Hamilton Insurance Group, Ltd.’s EV/EBITDA ratio, also known as enterprise multiple. At 2.0, when compared to the industry median of 9.3, 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. Hamilton Insurance Group, Ltd.’s shareholder yield is higher than its industry median ratio of 1.30%. 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. Hamilton Insurance Group, Ltd.’s price-to-book ratio is lower than its industry median ratio of 1.63. This could make Hamilton Insurance Group, Ltd. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Hamilton Insurance Group, Ltd.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Hamilton Insurance Group, Ltd.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 9.40. This could make Hamilton Insurance Group, Ltd. more attractive because the lower P/FCF ratio indicates that Hamilton Insurance Group, Ltd. 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.

The Hartford Insurance Group, Inc.’s Value Grade

Value Grade:

The Hartford Insurance Group, Inc., together with its subsidiaries, provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Business Insurance segment offers insurance coverages, including workers’ compensation, property, automobile, general and professional liability, package business, umbrella, fidelity and surety, marine, livestock, accident, health, and reinsurance through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers. The company's Personal Insurance segment provides automobile, homeowners, and personal umbrella coverages through direct-to-consumer channels and independent agents. Its Property & Casualty Other Operations segment offers coverage for asbestos and environmental exposures. The company's Employee Benefits segment provides group life, disability, and other group coverages to members of employer groups, associations, and affinity groups through direct insurance policies; reinsurance to other insurance companies; employer paid and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and leave management solution. This segment also distributes its group insurance products and services through brokers, consultants, third-party administrators, trade associations, and private exchanges. Its Hartford Funds segment offers managed mutual funds across various asset classes; and exchange-traded funds through broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust groups, and registered investment advisers, as well as investment management, distribution, and administrative services, such as product design, implementation, and oversight. The Hartford Insurance Group, Inc. was founded in 1810 and is headquartered in Hartford, 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.

The Hartford Insurance Group, Inc. has a Value Score of 85, which is considered to be undervalued.

The Hartford Insurance Group, Inc.’s price-earnings ratio is 11.4 compared to the industry median at 14.3. This means that it has a lower price relative to its earnings compared to its peers. This makes The Hartford Insurance Group, Inc. more attractive for value investors.

The Hartford Insurance Group, Inc.’s price-to-book ratio is lower than its peers. This could make The Hartford Insurance Group, Inc. more attractive for value investors when compared to the industry median at 1.63.

You can read more about The Hartford 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.

Markel Group Inc.’s Value Grade

Value Grade:

Markel Group Inc., through its subsidiaries, engages in the insurance business in the United States and internationally. It offers general and professional liability, personal lines, marine and energy, specialty programs, and workers' compensation insurance products; and property coverages that include fire, windstorm, hail, water damage, and other property coverages comprising catastrophe-exposed property risks, such as earthquake and wind. The company also offers credit and surety products, and collateral protection insurance products. In addition, it offers transaction, directors and officers, and healthcare liability reinsurance; and specialty treaty reinsurance products, including credit and surety, workers' compensation, marine and energy, public entity, mortgage default, aviation and space, agriculture, and discrete political violence. Further, the company provides construction services, consumer and building products, transportation-related products, consulting services, and equipment manufacturing products, as well as leasing and other services. Additionally, the company offers a range of investment products, including insurance-linked securities comprising catastrophe bonds, insurance swaps, traditional reinsurance contracts, industry loss warranties, and other financial instruments; and program services. It also operates as an investment fund manager. The company was formerly known as Markel Corporation and changed its name to Markel Group Inc. in May 2023. Markel Group Inc. was founded in 1930 and is headquartered in Glen Allen, Virginia.

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.

Markel Group Inc. has a Value Score of 78, which is considered to be undervalued.

Markel Group Inc.’s price-earnings ratio is 15.3 compared to the industry median at 14.3. This means that it has a higher price relative to its earnings compared to its peers. This makes Markel Group Inc. less attractive for value investors.

Markel Group Inc.’s price-to-book ratio is higher than its peers. This could make Markel Group Inc. less attractive for value investors when compared to the industry median at 1.63.

You can read more about Markel 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.

The Hanover Insurance Group, Inc.’s Value Grade

Value Grade:

The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates through four segments: Core Commercial, Specialty, Personal Lines, and Other. It offers commercial multiple peril, workers’ compensation, commercial automobile, and other commercial lines coverage; and professional and executive lines, marine, and surety and other, as well as specialty property and casualty comprising Hanover program business, excess and surplus business, Hanover specialty industrial, and specialty general liability business coverage. The company also provides personal automobile; and homeowners and other personal lines, including residences and personal property, liability claims, personal umbrella, inland marine, fire, personal watercraft, personal cyber, and other miscellaneous coverages. It markets its products and services through independent agents and brokers. The company was formerly known as Allmerica Financial Corp. and changed its name to The Hanover Insurance Group, Inc. in December 2005. The Hanover Insurance Group, Inc. was founded in 1852 and is headquartered in Worcester, Massachusetts.

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 Hanover Insurance Group, Inc. has a Value Score of 86, which is considered to be undervalued.

The Hanover Insurance Group, Inc.’s price-earnings ratio is 10.7 compared to the industry median at 14.3. This means that it has a lower price relative to its earnings compared to its peers. This makes The Hanover Insurance Group, Inc. more attractive for value investors.

The Hanover Insurance Group, Inc.’s price-to-book ratio is lower than its peers. This could make The Hanover Insurance Group, Inc. more attractive for value investors when compared to the industry median at 1.63.

You can read more about The Hanover 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.

United Fire Group, Inc.’s Value Grade

Value Grade:

United Fire Group, Inc., together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States. Its commercial lines include fire and allied lines, other liability, automobile, workers’ compensation, fidelity and surety coverage, and other insurance products; and personal lines comprise automobile, and fire and allied lines coverage, including assumed reinsurance for homeowners multi-peril coverage. The company sells its products through a network of independent agencies. United Fire Group, Inc. was incorporated in 1946 and is headquartered in Cedar Rapids, Iowa.

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.

United Fire Group, Inc. has a Value Score of 96, which is considered to be undervalued.

United Fire Group, Inc.’s price-earnings ratio is 8.8 compared to the industry median at 14.3. This means that it has a lower price relative to its earnings compared to its peers. This makes United Fire Group, Inc. more attractive for value investors.

United Fire Group, Inc.’s price-to-book ratio is higher than its peers. This could make United Fire Group, Inc. less attractive for value investors when compared to the industry median at 1.63.

You can read more about United Fire 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 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 5 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.

• Hamilton Insurance Group, Ltd. stock has a Value Grade of A.
• The Hartford Insurance Group, Inc. stock has a Value Grade of A.
• Markel Group Inc. stock has a Value Grade of B.
• The Hanover Insurance Group, Inc. stock has a Value Grade of A.
• United Fire Group, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 5 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.

• 5 Undervalued Insurance Stocks for Tuesday, December 23
• Is Chubb Limited (CB) Overvalued?
• Is The Progressive Corporation (PGR) Overvalued?
• 6 Undervalued Insurance Stocks for Monday, December 22

AAII Disclaimer

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