Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 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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4 Undervalued Insurance Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Insurance industry for Monday, March 09, 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 Financial Group, Inc.’s Value Grade

Value Grade:

American Financial Group, Inc., an insurance holding company, provides property and casualty insurance products in the United States. It operates through Property and Casualty Insurance and Other segments. 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. American Financial Group, Inc. was formerly known as American Financial Group Holdings Inc and changed its name to American Financial Group, Inc. in July 1997. 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 79, which is considered to be undervalued.

When you look at American Financial Group, Inc.’s price-to-sales ratio at 1.38 compared to the industry median at 1.04, this company has a higher price relative to revenue compared to its peers. This could make American Financial Group, Inc.’s stock less attractive for value investors.

American Financial Group, Inc.’s price-earnings ratio is 13.00 compared to the industry median at 12.10. This means it has a higher share price relative to earnings compared to its peers. This could make American Financial Group, Inc. less attractive for value investors.

Now, let’s assess American Financial Group, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 9.1, when compared to the industry median of 9.2, 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 Financial Group, Inc.’s shareholder yield is higher than its industry median ratio of 0.95%. 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 Financial Group, Inc.’s price-to-book ratio is higher than its industry median ratio of 1.56. This could make American Financial Group, Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at American Financial 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 Financial Group, Inc.’s price-to-free-cash-flow ratio is higher than its industry median ratio of 8.30. This could make American Financial Group, Inc. less attractive because the higher P/FCF ratio indicates that American Financial 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.

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 10.4 compared to the industry median at 12.1. 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 1.56.

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.

The Progressive Corporation’s Value Grade

Value Grade:

The Progressive Corporation operates as an insurance company in the United States. It writes insurance for personal autos and special lines products, including motorcycles, RVs, and watercraft; and personal residential property insurance for homeowners and renters. The company also writes auto-related liability and physical damage insurance for comprising dump trucks, log trucks, garbage trucks, tractors, trailers, straight trucks, tow trucks and wreckers, vans, pick-up trucks, and autos; business-related general liability and commercial property insurance for small businesses; and workers’ compensation insurance for the transportation industry. In addition, it offers other specialty property-casualty insurance and provides related services; personal property reinsurance products; and involved in investment activities. It sells its products through independent insurance agencies, as well as online and over the phone. The Progressive Corporation was founded in 1937 and is headquartered in Mayfield Village, 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.

The Progressive Corporation has a Value Score of 80, which is considered to be undervalued.

The Progressive Corporation’s price-earnings ratio is 11.0 compared to the industry median at 12.1. This means that it has a lower price relative to its earnings compared to its peers. This makes The Progressive Corporation more attractive for value investors.

The Progressive Corporation’s price-to-book ratio is lower than its peers. This could make The Progressive Corporation more attractive for value investors when compared to the industry median at 1.56.

You can read more about The Progressive 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.

The Travelers Companies, Inc.’s Value Grade

Value Grade:

The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United States, Canada, and internationally. It operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business Insurance segment offers workers' compensation, commercial automobile and property, general liability, commercial multi-peril, employers' liability, public and product liability, professional indemnity, marine, aviation, commercial property and automobile, onshore and offshore energy, construction, terrorism, personal accident, and kidnap and ransom insurance products. This segment operates through select accounts, which serve small businesses; middle accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and others that serve large and mid-sized customers, commercial trucking industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, and program managers. The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty coverages and related risk management services through independent agencies and brokers. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners’ insurance to individuals. The Travelers Companies, Inc. was founded in 1853 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.

The Travelers Companies, Inc. has a Value Score of 86, which is considered to be undervalued.

The Travelers Companies, Inc.’s price-earnings ratio is 11.2 compared to the industry median at 12.1. This means that it has a lower price relative to its earnings compared to its peers. This makes The Travelers Companies, Inc. more attractive for value investors.

The Travelers Companies, Inc.’s price-to-book ratio is lower than its peers. This could make The Travelers Companies, Inc. more attractive for value investors when compared to the industry median at 1.56.

You can read more about The Travelers 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 4 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 Financial Group, Inc. stock has a Value Grade of B.
• Brighthouse Financial, Inc. stock has a Value Grade of A.
• The Progressive Corporation stock has a Value Grade of B.
• The Travelers Companies, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 4 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.

• 4 Undervalued Insurance Stocks for Monday, March 09
• Is Chubb Limited (CB) Overvalued?
• Is The Progressive Corporation (PGR) Overvalued?
• 5 Undervalued Insurance Stocks for Friday, March 06

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.