5 Insurance Companies Boosting Book Value

Berkshire makes the list

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Tiziano Frateschi
Dec 21, 2020
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According to the GuruFocus All-in-One Screener, a Premium feature, the following guru-owned stocks have grown their book value per share over the past decade through Dec. 21.

Book value per share is calculated as total equity minus preferred stock, divided by shares outstanding. Theoretically, it is what shareholders will receive if a company is liquidated. Total equity is a balance sheet item and is equal to total assets minus total liabilities.

Since the book value per share may not reflect the company's true value, some investors check the tangible book value to confirm their investment ideas.

Berkshire Hathaway

The book value per share of Berkshire Hathaway Inc. (

BRK.A, Financial) has risen 11.60% over the last 10 years. The price-book ratio is 1.30 and the price-tangible book ratio is 1.72.

The holding company has a market cap of $528 billion.

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According to the discounted cash flow calculator, the stock is undervalued and is trading with a 9.10% margin of safety at $339,840. The share price has been as high as $352,500 and as low as $239,440 in the last 52 weeks. As of Monday, the stock was trading 3.60% below its 52-week high and 76.42% above its 52-week low. The price-earnings ratio is 15.08.

Tom Russo (Trades, Portfolio) is the largest guru shareholder of the company with 0.23% of outstanding shares, followed by Chris Davis (Trades, Portfolio) with 0.17% and Tom Gayner (Trades, Portfolio) with 0.07%.

Progressive

Progressive Corp.'s (

PGR, Financial) book value per share has grown 9.40% over the past decade. The price-book ratio is 3.21 and the price-tangible book ratio is 3.33.

The U.S auto insurer has a market cap of $56.38 billion and an enterprise value of $62.18 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 37.31% margin of safety at $96.31. The share price has been as high as $102 and as low as $62 in the last 52 weeks. As of Monday, the stock was trading 5.62% below its 52-week high and 54.89% above its 52-week low.

Aflac

Aflac Inc.'s (

AFL, Financial) book value per share has grown 14.40% over the past decade. The price-book ratio and the price-tangible book ratio are both 0.97.

The company which provides supplemental health insurance and life insurance has a market cap of $32.48 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 50.65% margin of safety at $44.81. The share price has been as high as $54.04 and as low as $23.07 in the last 52 weeks. As of Monday, the stock was trading 17.08% below its 52-week high and 94.23% above its 52-week low.

Sarah Ketterer (Trades, Portfolio) is the largest guru shareholder of the company with 0.23% of outstanding shares followed by John Rogers (Trades, Portfolio) with 0.22% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.18%.

Globe Life

The book value per share of Globe Life Inc. (

GL, Financial) has grown 12.10% over the last 10 years. The price-book ratio is 1.19and the price-tangible book ratio is 1.26.

The insurance holding company has a market cap of $9.78 billion and an enterprise value of $11.65 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 23.52% margin of safety at $93.43. The share price has been as high as $111.43 and as low as $56.74 in the last 52 weeks. As of Monday, the stock was trading 16.15% below its 52-week high and 64.66% above its 52-week low. The price-earnings ratio is 14.17.

With 6.07% of outstanding shares,

Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway is the company's largest guru shareholder 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, Financial) book value per share has grown 6.60% over the past decade. The price-book ratio is 1.71% and the price-tangible book ratio is 1.72%.

The regional property-casualty insurer has a market cap of $4.10 billion and an enterprise value of $4.82 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 27.94% margin of safety at $68.51. The share price has been as high as $70.89 and as low as $37.05 in the last 52 weeks. As of Monday, the stock was trading 3.36% below its 52-week high and 84.91% above its 52-week low.

Renaissance Technologies is the largest guru shareholder of the company with 0.37% of outstanding shares, 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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You can read about me on www.theextraincome.info, which gives suggestions on position trading.