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 Sunday, October 11, 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.
| Company | Ticker | Price/Sales | Price/Earnings | EV/EBITDA | Shareholder Yield | Price/Book Value | Price/Free Cash Flow | Value Grade |
| Arch Capital Group Ltd. | ACGL | 1.78 | 7.4 | 6.4 | 7.8% | 1.40 | 5.7 | A |
| American Financial Group, Inc. | AFG | 1.46 | 12.3 | 8.1 | 3.1% | 2.43 | 9.2 | B |
| AXIS Capital Holdings Limited | AXS | 1.08 | 6.9 | 6.2 | 8.0% | 1.19 | 3.2 | A |
| CNA Financial Corporation | CNA | 0.83 | 10.2 | 9.1 | 8.6% | 1.12 | 5.5 | A |
| F&G Annuities & Life, Inc. | FG | 0.42 | 6.4 | 3.0 | 7.5% | 0.55 | 0.6 | A |
| International General Insurance Holdings Ltd. | IGIC | 2.03 | 9.8 | 8.1 | 10.9% | 1.53 | na | A |
| Stewart Information Services Corporation | STC | 0.45 | 11.2 | 8.4 | (4.8%) | 0.93 | 17.1 | B |
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:
| Metric | Score | ACGL | Industry Median |
| Price/Sales | 46 | 1.78 | 1.24 |
| Price/Earnings | 9 | 7.4 | 11.3 |
| EV/EBITDA | 17 | 6.4 | 8.9 |
| Shareholder Yield | 9 | 7.8% | 2.4% |
| Price/Book Value | 39 | 1.40 | 1.52 |
| Price/Free Cash Flow | 13 | 5.7 | 8.6 |
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 company operates through three segments: Insurance, Reinsurance, and Mortgage. 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; and casualty insurance. 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 93, which is considered to be undervalued.
When you look at Arch Capital Group Ltd.’s price-to-sales ratio at 1.78 compared to the industry median at 1.24, 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 7.40 compared to the industry median at 11.30. 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 6.4, when compared to the industry median of 8.9, 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 higher than its industry median ratio of 2.40%. 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. Arch Capital Group Ltd.’s price-to-book ratio is lower than its industry median ratio of 1.52. 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 8.60. 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:
| Metric | Score | AFG | Industry Median |
| Price/Sales | 41 | 1.46 | 1.24 |
| Price/Earnings | 29 | 12.3 | 11.3 |
| EV/EBITDA | 26 | 8.1 | 8.9 |
| Shareholder Yield | 26 | 3.1% | 2.4% |
| Price/Book Value | 60 | 2.43 | 1.52 |
| Price/Free Cash Flow | 23 | 9.2 | 8.6 |
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 77, which is considered to be undervalued.
American Financial Group, Inc.’s price-earnings ratio is 12.3 compared to the industry median at 11.3. 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 1.52.
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.
AXIS Capital Holdings Limited’s Value Grade
Value Grade:
| Metric | Score | AXS | Industry Median |
| Price/Sales | 34 | 1.08 | 1.24 |
| Price/Earnings | 8 | 6.9 | 11.3 |
| EV/EBITDA | 16 | 6.2 | 8.9 |
| Shareholder Yield | 9 | 8.0% | 2.4% |
| Price/Book Value | 31 | 1.19 | 1.52 |
| Price/Free Cash Flow | 7 | 3.2 | 8.6 |
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 97, which is considered to be undervalued.
AXIS Capital Holdings Limited’s price-earnings ratio is 6.9 compared to the industry median at 11.3. 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 1.52.
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.
CNA Financial Corporation’s Value Grade
Value Grade:
| Metric | Score | CNA | Industry Median |
| Price/Sales | 29 | 0.83 | 1.24 |
| Price/Earnings | 18 | 10.2 | 11.3 |
| EV/EBITDA | 32 | 9.1 | 8.9 |
| Shareholder Yield | 7 | 8.6% | 2.4% |
| Price/Book Value | 28 | 1.12 | 1.52 |
| Price/Free Cash Flow | 13 | 5.5 | 8.6 |
CNA Financial Corporation, an insurance holding company, primarily provides commercial property and casualty insurance products in the United States, Canada, the United Kingdom, Continental Europe, and internationally. It operates through Specialty, Commercial, International, and Life & Group segments. The company offers professional liability coverage and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, errors and omissions, employment practices, fiduciary, and fidelity and cyber coverage to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products. It also provides property, marine, boiler, and machinery coverage insurance products; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, umbrella, and excess and surplus coverages; specialized loss-sensitive insurance programs and total risk management services; and a run-off long-term care business. The company was founded in 1853 and is based in Chicago, Illinois. CNA Financial Corporation is a subsidiary of Loews Corporation.
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.
CNA Financial Corporation has a Value Score of 94, which is considered to be undervalued.
CNA Financial Corporation’s price-earnings ratio is 10.2 compared to the industry median at 11.3. This means that it has a lower price relative to its earnings compared to its peers. This makes CNA Financial Corporation more attractive for value investors.
CNA Financial Corporation’s price-to-book ratio is higher than its peers. This could make CNA Financial Corporation less attractive for value investors when compared to the industry median at 1.52.
You can read more about CNA Financial 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.
F&G Annuities & Life, Inc.’s Value Grade
Value Grade:
| Metric | Score | FG | Industry Median |
| Price/Sales | 17 | 0.42 | 1.24 |
| Price/Earnings | 7 | 6.4 | 11.3 |
| EV/EBITDA | 5 | 3.0 | 8.9 |
| Shareholder Yield | 9 | 7.5% | 2.4% |
| Price/Book Value | 10 | 0.55 | 1.52 |
| Price/Free Cash Flow | 1 | 0.6 | 8.6 |
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 100, which is considered to be undervalued.
F&G Annuities & Life, Inc.’s price-earnings ratio is 6.4 compared to the industry median at 11.3. 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 1.52.
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.
International General Insurance Holdings Ltd.’s Value Grade
Value Grade:
| Metric | Score | IGIC | Industry Median |
| Price/Sales | 50 | 2.03 | 1.24 |
| Price/Earnings | 17 | 9.8 | 11.3 |
| EV/EBITDA | 26 | 8.1 | 8.9 |
| Shareholder Yield | 5 | 10.9% | 2.4% |
| Price/Book Value | 42 | 1.53 | 1.52 |
| Price/Free Cash Flow | na | na | 8.6 |
International General Insurance Holdings Ltd. engages in the provision of specialty insurance and reinsurance solutions in the United Kingdom, Europe, Central and South America, the Middle East and Africa. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It is involved in underwriting a portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, marine, and treaty reinsurance. The company was founded in 2001 and is based in Amman, Jordan.
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.
International General Insurance Holdings Ltd. has a Value Score of 87, which is considered to be undervalued.
International General Insurance Holdings Ltd.’s price-earnings ratio is 9.8 compared to the industry median at 11.3. This means that it has a lower price relative to its earnings compared to its peers. This makes International General Insurance Holdings Ltd. more attractive for value investors.
International General Insurance Holdings Ltd.’s price-to-book ratio is lower than its peers. This could make International General Insurance Holdings Ltd. fairly attractive for value investors when compared to the industry median at 1.52.
You can read more about International General Insurance Holdings 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.
Stewart Information Services Corporation’s Value Grade
Value Grade:
| Metric | Score | STC | Industry Median |
| Price/Sales | 18 | 0.45 | 1.24 |
| Price/Earnings | 23 | 11.2 | 11.3 |
| EV/EBITDA | 28 | 8.4 | 8.9 |
| Shareholder Yield | 68 | (4.8%) | 2.4% |
| Price/Book Value | 22 | 0.93 | 1.52 |
| Price/Free Cash Flow | 47 | 17.1 | 8.6 |
Stewart Information Services Corporation, through its subsidiaries, provides title insurance and real estate transaction related services in the United States and internationally. The company engages in searching, examining, closing, and insuring the condition of the title to real property. It also offers home and personal insurance services; services for tax-deferred exchanges; and digital customer engagement platform services. In addition, the company provides appraisal management, online notarization and closing, credit and real estate information, and search and valuation management services. It serves homebuyers and sellers, residential and commercial real estate professionals, mortgage lenders and servicers, title agencies and real estate attorneys, and home builders through direct operations, network of independent agencies, and other businesses. Stewart Information Services Corporation was founded in 1893 and is headquartered in Houston, Texas.
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.
Stewart Information Services Corporation has a Value Score of 77, which is considered to be undervalued.
Stewart Information Services Corporation’s price-earnings ratio is 11.2 compared to the industry median at 11.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Stewart Information Services Corporation more attractive for value investors.
Stewart Information Services Corporation’s price-to-book ratio is higher than its peers. This could make Stewart Information Services Corporation less attractive for value investors when compared to the industry median at 1.52.
You can read more about Stewart Information Services 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.
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.
- Arch Capital Group Ltd. stock has a Value Grade of A.
- American Financial Group, Inc. stock has a Value Grade of B.
- AXIS Capital Holdings Limited stock has a Value Grade of A.
- CNA Financial Corporation stock has a Value Grade of A.
- F&G Annuities & Life, Inc. stock has a Value Grade of A.
- International General Insurance Holdings Ltd. stock has a Value Grade of A.
- Stewart Information Services Corporation stock has a Value Grade of B.
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 Friday, October 09
- Why Global Indemnity Group, LLC’s (GBLI) Stock Is Up 6.45%
- Why Orion180 Insurance Group Inc.’s (OIG) Stock Is Down 7.75%
- 3 Undervalued Insurance Stocks for Thursday, October 08
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.
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