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 Thursday, May 28, 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.

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. It distributes its products through distribution partners in wholesale and retail markets. The company 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 66, which is considered to be undervalued.

When you look at Bowhead Specialty Holdings Inc.’s price-to-sales ratio at 1.51 compared to the industry median at 1.12, this company has a higher price relative to revenue compared to its peers. This could make Bowhead Specialty Holdings Inc.’s stock less attractive for value investors.

Bowhead Specialty Holdings Inc.’s price-earnings ratio is 15.60 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 Bowhead Specialty Holdings Inc. less attractive for value investors.

Now, let’s assess Bowhead Specialty Holdings Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 12.8, when compared to the industry median of 9.0, the company may be considered overvalued 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. Bowhead Specialty Holdings Inc.’s shareholder yield is lower than its industry median ratio of 1.40%. 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. Bowhead Specialty Holdings Inc.’s price-to-book ratio is higher than its industry median ratio of 1.54. This could make Bowhead Specialty Holdings Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Bowhead Specialty Holdings Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Bowhead Specialty Holdings Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 8.00. This could make Bowhead Specialty Holdings Inc. more attractive because the lower P/FCF ratio indicates that Bowhead Specialty Holdings 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.

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 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 9.7 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 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 1.54.

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.

Genworth Financial, Inc.’s Value Grade

Value Grade:

Genworth Financial, Inc., together with its subsidiaries, provides mortgage and long-term care insurance products in the United States. It operates through two segments: Enact and Closed Block. The company offers primary mortgage, and mortgage insurance products, and contract underwriting services. It also provides long-term care insurance products that are intended to protect against the significant and escalating costs of long-term care services provided in the insured’s home, assisted living, and nursing facilities. In addition, the company offers protection and retirement income products, that includes traditional and non-traditional life insurance, such as term, universal and term universal life insurance, corporate-owned life insurance, and funding agreements; fixed annuities; and variable annuities. It distributes its products through sales force, sales representatives, and digital marketing programs. Genworth Financial, Inc. was founded in 1871 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.

Genworth Financial, Inc. has a Value Score of 95, which is considered to be undervalued.

Genworth Financial, Inc.’s price-earnings ratio is 17.0 compared to the industry median at 12.1. This means that it has a higher price relative to its earnings compared to its peers. This makes Genworth Financial, Inc. less attractive for value investors.

Genworth Financial, Inc.’s price-to-book ratio is higher than its peers. This could make Genworth Financial, Inc. less attractive for value investors when compared to the industry median at 1.54.

You can read more about Genworth 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.

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. It 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. It also provides 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, products liability and contractors, management liability, medical professionals, general liability, 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.

Hamilton Insurance Group, Ltd.’s price-earnings ratio is 5.0 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 Hamilton Insurance Group, Ltd. more attractive for value investors.

Hamilton Insurance Group, Ltd.’s price-to-book ratio is higher than its peers. This could make Hamilton Insurance Group, Ltd. less attractive for value investors when compared to the industry median at 1.54.

You can read more about Hamilton Insurance Group, 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.

Kemper Corporation’s Value Grade

Value Grade:

Kemper Corporation, an insurance holding company, provides insurance products in the United States. It operates in two segments, Specialty Property & Casualty Insurance, and Life Insurance. The Specialty Property & Casualty Insurance segment primarily offers specialty personal automobile and commercial automobile insurance through independent agents and brokers. The Life Insurance segment primarily provides individual life, accident, supplemental health, and property insurance. The company was formerly known as Unitrin, Inc. and changed its name to Kemper Corporation in August 2011. Kemper Corporation was incorporated in 1990 and is headquartered in Chicago, 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.

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

Kemper Corporation’s price-earnings ratio is 38.0 compared to the industry median at 12.1. This means that it has a higher price relative to its earnings compared to its peers. This makes Kemper Corporation less attractive for value investors.

Kemper Corporation’s price-to-book ratio is higher than its peers. This could make Kemper Corporation less attractive for value investors when compared to the industry median at 1.54.

You can read more about Kemper 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.

Sun Life Financial Inc.’s Value Grade

Value Grade:

Sun Life Financial Inc., a financial services company, provides asset management, wealth, insurance and health solutions to individual and institutional customers in Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia, and Bermuda. It offers various insurance products, such as term and permanent life; personal health, which includes prescription drugs, dental, and vision care; critical illness; long-term care; and disability. The company also provides investments products, such as mutual funds, segregated funds, annuities, and guaranteed investment products; financial planning services; and asset management products, including pooled funds, institutional portfolios and pension funds. The company was formerly known as Sun Life Financial Services of Canada Inc. and changed its name to Sun Life Financial Inc. in July 2003. Sun Life Financial Inc. was founded in 1871 and is headquartered in Toronto, Canada.

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.

Sun Life Financial Inc. has a Value Score of 69, which is considered to be undervalued.

Sun Life Financial Inc.’s price-earnings ratio is 18.9 compared to the industry median at 12.1. This means that it has a higher price relative to its earnings compared to its peers. This makes Sun Life Financial Inc. less attractive for value investors.

Sun Life Financial Inc.’s price-to-book ratio is lower than its peers. This could make Sun Life Financial Inc. more attractive for value investors when compared to the industry median at 1.54.

You can read more about Sun Life 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.

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.

• Bowhead Specialty Holdings Inc. stock has a Value Grade of B.
• Donegal Group Inc. stock has a Value Grade of A.
• Genworth Financial, Inc. stock has a Value Grade of A.
• Hamilton Insurance Group, Ltd. stock has a Value Grade of A.
• Kemper Corporation stock has a Value Grade of B.
• Sun Life Financial Inc. stock has a Value Grade of B.

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.

• Choice Stocks From AAII’s Model Portfolios: The Platinum 30
• 3 Undervalued Insurance Stocks for Thursday, May 28
• Is Chubb Limited (CB) Overvalued?
• 6 Undervalued Insurance Stocks for Wednesday, May 27

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.