5 Insurance Companies Boosting Earnings

Berkshire Hathaway on the list

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Dec 04, 2020
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The following insurance companies have grown their earnings per share over a five-year period. According to the GuruFocus discounted cash flow calculator as of Nov. 4, all of them also trade with a margin of safety.

Berkshire Hathaway

Berkshire Hathaway Inc.'s (BRK.A) (BRK.B, Financial) earnings per share have grown 6.90% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 7.70% margin of safety at $230 per share. The price-earnings ratio is 15.38. The share price has been as high as $234.99 and as low as $159 in the last year; it is currently 2.11% below its 52-week high and 44.22% above its 52-week low.

The holding company has a market cap of $540 billion and an enterprise value of $625 billion.

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The company's largest guru shareholder is Tom Russo (Trades, Portfolio) with 0.23% of outstanding shares, followed by Chris Davis (Trades, Portfolio) with 0.17%.

Progressive

The earnings per share of Progressive Corp. (PGR) have grown 26.80% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 42.61% margin of safety at $88.18 per share. The price-earnings ratio is 10.31. The share price has been as high as $102 and as low as $62.18 in the last year; it is currently 13.59% below its 52-week high and 41.81% above its 52-week low.

The company has a market cap of $51.81 billion and an enterprise value of $57.61 billion.

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The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.90% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.40% and Glenn Greenberg (Trades, Portfolio) with 0.28%.

Cincinnati Financial

Cincinnati Financial Corp.'s (CINF) earnings per share have grown 15% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 2.56% margin of safety at $81.52 per share. The price-earnings ratio is $16.72. The share price has been as high as $115.53 and as low as $46 in the last year; it is currently 29.44% below its 52-week high and 76.95% above its 52-week low.

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The property and casualty insurance company has a market cap of $13.04 billion and an enterprise value of $13.09 billion.

With a 0.10% stake, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Joel Greenblatt (Trades, Portfolio)'s Gotham Asset Management with 0.03%.

Globe Life

The earnings per share of Globe Life Inc. (GL) have grown 15.10% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with an 22.33% margin of safety at $94.89 per share. The price-earnings ratio is 14.49. The share price has been as high as $111.43 and as low as $56.74 in the last year; it is currently 14.84% below its 52-week high and 67.24% above its 52-week low.

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The insurance holding company has a market cap of $9.99 billion and an enterprise value of $11.86 billion.

The company's largest guru shareholder is Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway with 6.07% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.26% and Richard Pzena (Trades, Portfolio) with 0.23%.

Selective Insurance

Selective Insurance Group Inc.'s (SIGI) earnings per share have grown 9.70% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 33.14% margin of safety at $63.57 per share. The price-earnings ratio is 19.22. The share price has been as high as $70.89 and as low as $37.05 in the last year; it is currently 10.33% below its 52-week high and 71.58% above its 52-week low.

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The regional property-casualty insurer has a market cap of $3.84 billion and an enterprise value of $4.56 billion.

With a 0.37% stake, Jim Simons (Trades, Portfolio)' Renaissance Technologies firm is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 0.27% and Paul Tudor Jones (Trades, Portfolio) with 0.02%.

Disclosure: I do not own any stocks mentioned.

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