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 Tuesday, July 21, 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.

The Allstate Corporation’s Value Grade

Value Grade:

The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. It operates in four segments: Allstate Protection; Run-off Property-Liability; Protection Services; and Corporate and Other. The company offers private passenger auto, homeowners, other personal lines and commercial insurance through exclusive agents, independent agents, contact centers and online under the Allstate, National General, Direct Auto and Answer Financial brands. It also provides consumer product protection plans, device and mobile data collection services, and analytic solutions using automotive telematics information, roadside assistance, and protection plans; and insurance products, such as identity protection and restoration. In addition, the company offers property and casualty insurance, as well as engages in company activities and certain non-insurance operations, including expenses associated with strategic initiatives. Further, it offers automotive protection; vehicle service contracts, guaranteed asset protection, road hazard tires and wheels, and paintless dent repair protection; and roadside assistance, mobility data collection services, and analytic solutions using automotive telematics information, identity theft protection, and remediation services. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, 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.

The Allstate Corporation has a Value Score of 94, which is considered to be undervalued.

When you look at The Allstate Corporation’s price-to-sales ratio at 0.98 compared to the industry median at 1.27, this company has a lower price relative to revenue compared to its peers. This could make The Allstate Corporation’s stock more attractive for value investors.

The Allstate Corporation’s price-earnings ratio is 5.60 compared to the industry median at 13.05. This means it has a lower share price relative to earnings compared to its peers. This could make The Allstate Corporation more attractive for value investors.

Now, let’s assess The Allstate Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 4.4, when compared to the industry median of 9.0, 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. The Allstate Corporation’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. The Allstate Corporation’s price-to-book ratio is higher than its industry median ratio of 1.75. This could make The Allstate Corporation less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at The Allstate Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. The Allstate Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 8.60. This could make The Allstate Corporation more attractive because the lower P/FCF ratio indicates that The Allstate Corporation 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.

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 62, which is considered to be undervalued.

Bowhead Specialty Holdings Inc.’s price-earnings ratio is 17.6 compared to the industry median at 13.1. 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 1.75.

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.

F&G; Annuities & Life, Inc.’s Value Grade

Value Grade:

F&G; Annuities & Life, Inc., together with its subsidiaries, provides annuity and life insurance products in the United States. It offers fixed indexed annuities registered index-linked annuities, pension risk transfer and indexed universal life, and multi-year guarantee annuities; immediate annuities; indexed universal life insurance; pension risk transfer solutions; and institutional funding agreements. The company distributes its products through independent agents, banks, and broker-dealers to retail annuity and life customers, as well as institutional clients. The company was founded in 1959 and is headquartered in Des Moines, Iowa. F&G; Annuities & Life, Inc. operates as a subsidiary of Fidelity National Financial, Inc.

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.

F&G; Annuities & Life, Inc. has a Value Score of 95, which is considered to be undervalued.

F&G; Annuities & Life, Inc.’s price-earnings ratio is 8.0 compared to the industry median at 13.1. This means that it has a lower price relative to its earnings compared to its peers. This makes F&G; Annuities & Life, Inc. more attractive for value investors.

F&G; Annuities & Life, Inc.’s price-to-book ratio is higher than its peers. This could make F&G; Annuities & Life, Inc. less attractive for value investors when compared to the industry median at 1.75.

You can read more about F&G; Annuities & Life, 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 96, which is considered to be undervalued.

Hamilton Insurance Group, Ltd.’s price-earnings ratio is 5.8 compared to the industry median at 13.1. 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 1.75.

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.

Pelagos Insurance Capital Limited’s Value Grade

Value Grade:

Pelagos Insurance Capital Limited provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in two segments: Insurance and Reinsurance. The Insurance segment offers property, marine, asset backed finance and portfolio credit, aviation and aerospace, political risk, violence and terror, energy, cyber, and other insurance risks products. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The company was formerly known as Fidelis Insurance Holdings Limited and changed its name to Pelagos Insurance Capital Limited in May 2026. Pelagos Insurance Capital Limited was incorporated in 2014 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.

Pelagos Insurance Capital Limited has a Value Score of 98, which is considered to be undervalued.

Pelagos Insurance Capital Limited’s price-earnings ratio is 7.0 compared to the industry median at 13.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Pelagos Insurance Capital Limited more attractive for value investors.

Pelagos Insurance Capital Limited’s price-to-book ratio is higher than its peers. This could make Pelagos Insurance Capital Limited less attractive for value investors when compared to the industry median at 1.75.

You can read more about Pelagos Insurance Capital 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.

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 89, which is considered to be undervalued.

The Travelers Companies, Inc.’s price-earnings ratio is 9.9 compared to the industry median at 13.1. 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 1.75.

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 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.

• The Allstate Corporation stock has a Value Grade of A.
• Bowhead Specialty Holdings Inc. stock has a Value Grade of B.
• F&G; Annuities & Life, Inc. stock has a Value Grade of A.
• Hamilton Insurance Group, Ltd. stock has a Value Grade of A.
• Pelagos Insurance Capital Limited stock has a Value Grade of A.
• The Travelers Companies, Inc. stock has a Value Grade of A.

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.

• 6 Undervalued Insurance Stocks for Monday, July 20
• Is Arch Capital Group Ltd. (ACGL) Overvalued?
• Is Cincinnati Financial Corporation (CINF) Overvalued?
• Is The Hartford Insurance Group, Inc. (HIG) Overvalued?

AAII Disclaimer

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