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 Thursday, December 25, 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.

Arch Capital Group Ltd.’s Value Grade

Value Grade:

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products in the United States, Canada, Bermuda, the United Kingdom, Europe, and Australia. The Insurance segment offers commercial automobile; commercial multiperil; financial and professional line liability; admitted, excess, and surplus casualty lines; property and short-tail specialty; workers compensation; casualty; marine and aviation; excess and surplus casualty; construction and national accounts; alternative market risks and employer’s liability; travel, accident, and health; contract and commercial surety coverage; and other insurance products, as well as Lloyd’s syndicates; programs; and warranty and lenders solutions. Its Reinsurance segment provides reinsurance products for casualty; marine and aviation; property catastrophe; property excluding property catastrophe; and other specialty products. The Mortgage segment offers U.S. primary mortgage insurance business written predominantly on loans sold to the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation; reinsurance and underwriting services related to the U.S. credit-risk transfer business and other U.S. mortgage reinsurance transactions; and international mortgage insurance and reinsurance business covering loans. It markets its products through a group of licensed independent retail and wholesale brokers. The company was formerly known as Risk Capital Holdings, Inc. Arch Capital Group Ltd. was founded in 1995 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.

Arch Capital Group Ltd. has a Value Score of 83, which is considered to be undervalued.

When you look at Arch Capital Group Ltd.’s price-to-sales ratio at 1.83 compared to the industry median at 1.12, this company has a higher price relative to revenue compared to its peers. This could make Arch Capital Group Ltd.’s stock less attractive for value investors.

Arch Capital Group Ltd.’s price-earnings ratio is 9.00 compared to the industry median at 14.40. This means it has a lower share price relative to earnings compared to its peers. This could make Arch Capital Group Ltd. more attractive for value investors.

Now, let’s assess Arch Capital Group Ltd.’s EV/EBITDA ratio, also known as enterprise multiple. At 7.7, 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. Arch Capital Group Ltd.’s shareholder yield is lower 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. Arch Capital Group Ltd.’s price-to-book ratio is lower than its industry median ratio of 1.61. This could make Arch Capital Group Ltd. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Arch Capital 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. Arch Capital Group Ltd.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 9.30. This could make Arch Capital Group Ltd. more attractive because the lower P/FCF ratio indicates that Arch Capital 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.

American Financial Group, Inc.’s Value Grade

Value Grade:

American Financial Group, Inc., an insurance holding company, provides specialty property and casualty insurance products in the United States. The company offers property and transportation insurance products, such as physical damage and liability coverage for buses and trucks other specialty transportation niches, inland and ocean marine, agricultural-related products, and other commercial property coverages; specialty casualty insurance, including primarily excess and surplus, executive and professional liability, general liability, umbrella and excess liability, and specialty coverage in targeted markets, as well as customized programs for small to mid-sized businesses and workers’ compensation insurance; and specialty financial insurance products comprising risk management insurance programs for lending and leasing institutions, fidelity and surety products, and trade credit insurance. It sells its property and casualty insurance products through independent insurance agents and brokers. The company was founded in 1872 and is headquartered in Cincinnati, Ohio.

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 Financial Group, Inc. has a Value Score of 72, which is considered to be undervalued.

American Financial Group, Inc.’s price-earnings ratio is 14.5 compared to the industry median at 14.4. This means that it has a higher price relative to its earnings compared to its peers. This makes American Financial Group, Inc. less attractive for value investors.

American Financial Group, Inc.’s price-to-book ratio is lower than its peers. This could make American Financial Group, Inc. more attractive for value investors when compared to the industry median at 1.61.

You can read more about American Financial 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.

Assurant, Inc.’s Value Grade

Value Grade:

Assurant, Inc. provides protection services to connected devices, homes, and automobiles in North America, Latin America, Europe, and the Asia Pacific. It operates in two segments, Global Lifestyle and Global Housing. The Global Lifestyle segment offers mobile device solutions, and extended service contracts and related services for consumer electronics and appliances, and financial services and other insurance products; and vehicle protection, commercial equipment, and other related services. The Global Housing segment provides lender-placed homeowners, manufactured housing, and flood insurance; renters insurance and related products; and voluntary manufactured housing, and condominium and homeowners insurance products. The company was formerly known as Fortis, Inc. and changed its name to Assurant, Inc. in February 2004. Assurant, Inc. was founded in 1892 and is headquartered in Atlanta, Georgia.

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.

Assurant, Inc. has a Value Score of 76, which is considered to be undervalued.

Assurant, Inc.’s price-earnings ratio is 14.7 compared to the industry median at 14.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Assurant, Inc. less attractive for value investors.

Assurant, Inc.’s price-to-book ratio is lower than its peers. This could make Assurant, Inc. more attractive for value investors when compared to the industry median at 1.61.

You can read more about Assurant, 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.

Bowhead Specialty Holdings Inc.’s Value Grade

Value Grade:

Bowhead Specialty Holdings Inc. provides commercial specialty property and casualty insurance products in the United States. It underwrites casualty insurance solutions for risks in the construction, distribution, heavy manufacturing, real estate, and hospitality segments; professional liability insurance solutions, including directors and officers liability, errors and omissions liability, employment practices liability, fiduciary liability, fidelity liability and miscellaneous professional liability, crime insurance, and cyber for financial institutions; and healthcare solutions for hospitals, senior care providers, managed care organizations, miscellaneous medical facilities, and management liability segments. In addition, it offers Baleen Specialty, a technology-powered underwriting operation, that specializes in small to mid-sized risks that are not eligible in the admitted market. The company distributes its products through distribution partners in wholesale and retail markets. Bowhead Specialty Holdings Inc. was formerly known as Bowhead Holdings Inc. and changed its name to Bowhead Specialty Holdings Inc. in March 2024. The company was founded in 2020 and is based in New York, New York.

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.

Bowhead Specialty Holdings Inc. has a Value Score of 63, which is considered to be undervalued.

Bowhead Specialty Holdings Inc.’s price-earnings ratio is 18.7 compared to the industry median at 14.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Bowhead Specialty Holdings Inc. less attractive for value investors.

Bowhead Specialty Holdings Inc.’s price-to-book ratio is lower than its peers. This could make Bowhead Specialty Holdings Inc. more attractive for value investors when compared to the industry median at 1.61.

You can read more about Bowhead Specialty 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.

Kingstone Companies, Inc.’s Value Grade

Value Grade:

Kingstone Companies, Inc., through its subsidiary, Kingstone Insurance Company ("KICO"), provides property and casualty insurance products in the United States. It offers personal line of insurance products, such as homeowners, dwelling fire, cooperative/condominiums, renters, and personal umbrella policies; and commercial auto insurance products. It also provides for-hire vehicle physical damage only policies for livery and car service vehicles and taxicabs; and canine legal liability policies. In addition, the company offers reinsurance products. It underwrites its products through retail and wholesale agents and brokers. The company was formerly known as DCAP Group, Inc. and changed its name to Kingstone Companies, Inc. in July 2009. Kingstone Companies, Inc. was founded in 1886 and is headquartered in Kingston, New York.

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.

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

Kingstone Companies, Inc.’s price-earnings ratio is 7.7 compared to the industry median at 14.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Kingstone Companies, Inc. more attractive for value investors.

Kingstone Companies, Inc.’s price-to-book ratio is lower than its peers. This could make Kingstone Companies, Inc. more attractive for value investors when compared to the industry median at 1.61.

You can read more about Kingstone 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 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.

• Arch Capital Group Ltd. stock has a Value Grade of A.
• American Financial Group, Inc. stock has a Value Grade of B.
• Assurant, Inc. stock has a Value Grade of B.
• Bowhead Specialty Holdings Inc. stock has a Value Grade of B.
• Kingstone Companies, Inc. stock has a Value Grade of B.

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 Thursday, December 25
• Is Chubb Limited (CB) Overvalued?
• Is The Progressive Corporation (PGR) Overvalued?
• 5 Undervalued Insurance Stocks for Wednesday, December 24

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.