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 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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7 Undervalued Insurance 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 industry for Wednesday, March 04, 2026. 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.

American International Group, Inc.’s Value Grade

Value Grade:

American International Group, Inc. provides insurance products for commercial, institutional, and individual customers in North America and internationally. It operates through three segments: North America Commercial, International Commercial, and Global Personal. The company offers commercial and industrial property insurance, including business interruption and package insurance that cover exposure to made and natural disasters; general liability, environmental, commercial automobile liability, workers’ compensation, excess casualty, and crisis management insurance products; risk-sharing and other customized structured programs for large corporate and multinational customers; professional liability insurance; and marine, energy-related property insurance products, aviation, political risk, trade credit, and trade finance products. It also provides group personal accident and business travel products for employees, associations, and other organizations; voluntary and sponsor-paid personal accident and supplemental health products for individuals; and personal auto and homeowners in selected markets, comprehensive extended warranty, device protection insurance, home warranty and related services, and insurance for high net-worth individuals. In addition, the company offers mortgage and other loans receivable, such as commercial mortgages, life insurance policy loans, commercial loans, and other loans and notes receivable. American International Group, Inc. was founded in 1919 and is headquartered 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.

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 1.73 compared to the industry median at 1.05, this company has a higher price relative to revenue compared to its peers. This could make American International Group, Inc.’s stock less attractive for value investors.

American International Group, Inc.’s price-earnings ratio is 14.60 compared to the industry median at 13.20. 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 6.5, when compared to the industry median of 9.1, 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 1.10%. 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. American International Group, Inc.’s price-to-book ratio is lower than its industry median ratio of 1.57. 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 8.30. 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.

AXIS Capital Holdings Limited’s Value Grade

Value Grade:

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products in Bermuda, the United States, and internationally. The company operates through two segments, Insurance and Reinsurance. Its Insurance segment offers professional insurance products that cover directors’ and officers’ liability, errors and omissions, employment practices, fiduciary, crime, professional indemnity, medical malpractice, environmental liability, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers; and property insurance products for commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. This segment also provides marine and aviation insurance services for offshore energy, offshore renewable energy, ocean marine, cargo, liability, including kidnap and ransom, fine art, specie, and hull war, hull and liability, and specific war coverage for passenger airlines, cargo operations, general aviation operations, airports, aviation authorities, security firms, and product manufacturers; personal accident, travel insurance, specialty health products for employer and affinity groups, and pet insurance products; and liability, cyber, and credit and political risk insurance services. The Reinsurance segment offers agriculture, marine and aviation, catastrophe, accident and health, credit and surety, motor, professional, travel, life, engineering, property, and liability reinsurance products. AXIS Capital Holdings Limited was founded in 2001 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.

AXIS Capital Holdings Limited has a Value Score of 95, which is considered to be undervalued.

AXIS Capital Holdings Limited’s price-earnings ratio is 8.4 compared to the industry median at 13.2. This means that it has a lower price relative to its earnings compared to its peers. This makes AXIS Capital Holdings Limited more attractive for value investors.

AXIS Capital Holdings Limited’s price-to-book ratio is higher than its peers. This could make AXIS Capital Holdings Limited less attractive for value investors when compared to the industry median at 1.57.

You can read more about AXIS Capital Holdings Limited’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.

Brighthouse Financial, Inc.’s Value Grade

Value Grade:

Brighthouse Financial, Inc. provides annuity and life insurance products in the United States. The company operates through Annuities, Life, and Run-off segments. The Annuities segment offers variable, fixed, index-linked, and income annuities for contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security. The Life segment provides term, universal, whole, and variable life products for policyholders’ needs for financial security and protected wealth transfer. The Run-off segment manages universal life with secondary guarantees, structured settlements, pension risk transfer contracts, various company-owned life insurance policies, and funding agreements. Brighthouse Financial, Inc. was founded in 1863 and is headquartered in Charlotte, North Carolina.

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.

Brighthouse Financial, Inc. has a Value Score of 89, which is considered to be undervalued.

Brighthouse Financial, Inc.’s price-earnings ratio is 10.5 compared to the industry median at 13.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Brighthouse Financial, Inc. more attractive for value investors.

Brighthouse Financial, Inc.’s price-to-book ratio is higher than its peers. This could make Brighthouse Financial, Inc. less attractive for value investors when compared to the industry median at 1.57.

You can read more about Brighthouse 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.

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. operates as 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 88, which is considered to be undervalued.

Donegal Group Inc.’s price-earnings ratio is 7.5 compared to the industry median at 13.2. 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 1.57.

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.

Greenlight Capital Re, Ltd.’s Value Grade

Value Grade:

Greenlight Capital Re, Ltd., through its subsidiaries, operates as a property and casualty reinsurance company worldwide. The company offers various property reinsurance products and services, including automobile liability, personal lines, and commercial lines. It also provides casualty reinsurance products and services comprising general liability, umbrella, multiline casualty, and worker’s compensation; and accident and health, transactional liability, mortgage insurance, surety, trade credit, marine, and energy, as well as other specialty products, such as aviation, cyber, political, and terrorism products. The company markets its products through reinsurance brokers. Greenlight Capital Re, Ltd. was incorporated in 2004 and is headquartered in Grand Cayman, the Cayman Islands.

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.

Greenlight Capital Re, Ltd. has a Value Score of 72, which is considered to be undervalued.

Greenlight Capital Re, Ltd.’s price-to-book ratio is higher than its peers. This could make Greenlight Capital Re, Ltd. less attractive for value investors when compared to the industry median at 1.57.

You can read more about Greenlight Capital Re, 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.

Heritage Insurance Holdings, Inc.’s Value Grade

Value Grade:

Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. It offers personal residential insurance in Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia; and commercial residential property insurance in Florida, New Jersey, and New York. The company also provides homeowners insurance, condo insurance, dwelling fire, equipment coverage, and artisan contractor program. It offers insurance products through a network of independent agents. The company was founded in 2012 and is headquartered in Tampa, Florida.

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.

Heritage Insurance Holdings, Inc. has a Value Score of 87, which is considered to be undervalued.

Heritage Insurance Holdings, Inc.’s price-earnings ratio is 5.8 compared to the industry median at 13.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Heritage Insurance Holdings, Inc. more attractive for value investors.

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

You can read more about Heritage Insurance 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.

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 for individuals and businesses in the United States. It operates in four segments: Core Commercial, Specialty, Personal Lines, and Other. The company offers commercial multiple peril, commercial automobile, workers’ compensation, and other core commercial coverage; and professional and executive lines, marine, and surety and other, as well as specialty property and casualty products comprising Hanover program business, excess and surplus business, Hanover specialty industrial, and specialty general liability business coverage. It 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. In addition, the company offers insurance products for collector cars, motorcycles, off-road vehicles, condominiums, valuable items, business owners, international, and management and professional liability; and for the construction, cultural and educational institutions, financial intuitions, healthcare, human services, life sciences, manufacturing, professional services, real estate, retail, technology, and wholesale and distribution industries. 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 91, which is considered to be undervalued.

The Hanover Insurance Group, Inc.’s price-earnings ratio is 9.9 compared to the industry median at 13.2. 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 1.57.

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.

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 7 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.

• American International Group, Inc. stock has a Value Grade of A.
• AXIS Capital Holdings Limited stock has a Value Grade of A.
• Brighthouse Financial, Inc. stock has a Value Grade of A.
• Donegal Group Inc. stock has a Value Grade of A.
• Greenlight Capital Re, Ltd. stock has a Value Grade of B.
• Heritage Insurance Holdings, Inc. stock has a Value Grade of A.
• The Hanover Insurance Group, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 7 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.

• 7 Undervalued Insurance Stocks for Wednesday, March 04
• Is Chubb Limited (CB) Overvalued?
• Is The Progressive Corporation (PGR) Overvalued?
• 7 Undervalued Insurance Stocks for Tuesday, March 03

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.