5 Insurance Companies Boosting Earnings

American Equity Investment makes the list

Author's Avatar
Tiziano Frateschi
Apr 13, 2021
Article's Main Image

The following insurance companies have grown their earnings per share over the past five-year period. According to the GuruFocus discounted cash flow calculator as of April 13, all of them also trade with a margin of safety.

American Equity Investment

American Equity Investment Life Holding Co.'s (AEL) earnings per share have climbed 28.10% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with an 87.32% margin of safety at $31.21 per share. The price-earnings ratio is 4.52. The share price has been as high as $34.25 and as low as $15.56 in the last year; it is currently 8.88% below its 52-week high and 100.51% above its 52-week low.

ccb91e76b6727c3876b8af553bb27a88.png

The financial services company has a market cap of $1.98 billion.

The company's largest guru shareholder is

Richard Pzena (Trades, Portfolio) with 1.49% of outstanding shares, followed by John Paulson (Trades, Portfolio) with 1.01% and Steven Scruggs (Trades, Portfolio) with 0.20%.

The Hanover Insurance Group

The earnings per share of The Hanover Insurance Group Inc. (THG) have grown 22.50% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 65.76% margin of safety at $134.76 per share. The price-earnings ratio is 14.15. The share price has been as high as $135.77 and as low as $80.78 in the last year; it is currently 0.74% below its 52-week high and 66.81% above its 52-week low.

c2e31e18b22d33ca67ce66d0a48762fb.png

The holding company has a market cap of $4.90 billion and an enterprise value of $5.56 billion.

The company's largest guru shareholder is Pzena with 0.27% of outstanding shares, followed by

Chuck Royce (Trades, Portfolio) with 0.18% and HOTCHKIS & WILEY with 0.16%.

Primerica

Primerica Inc.'s (PRI) earnings per share have risen 20.80% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 51.65% margin of safety at $152.86 per share. The price-earnings ratio is $15.94. The share price has been as high as $157.7 and as low as $84.44 in the last year; it is currently 3.08% below its 52-week high and 81.01% above its 52-week low.

bcba0166cb3586c6e524db513a433953.png

The U.S. company, which provides financial services to middle-income households, has a market cap of $6.02 billion and an enterprise value of $7.25 billion.

With a 5.71% stake,

Ron Baron (Trades, Portfolio) is the company's largest guru shareholder, followed by Glenn Greenberg (Trades, Portfolio) with 4.25% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.08%.

First American Financial

The earnings per share of First American Financial Corp. (FAF) have increased 20.30% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 76.83% margin of safety at $59.90 per share. The price-earnings ratio is 9.69. The share price has been as high as $59.92 and as low as $39.03 in the last year; it is currently 0.03% below its 52-week high and 53.47% above its 52-week low.

3ae4b436f59ff6fdc0af5b6415ab580d.png

The company, which provides insurance and related services, has a market cap of $6.57 billion and an enterprise value of $7.09 billion.

The company's largest guru shareholder is

John Rogers (Trades, Portfolio) with 3.91% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.89% and the Simons' firm with 0.48%.

American Financial Group

American Financial Group Inc.'s (AFG) earnings per share have risen 14.20% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 22.19% margin of safety at $118.24 per share. The price-earnings ratio is $14.04. The share price has been as high as $120.63 and as low as $51.55 in the last year; it is currently 1.98% below its 52-week high and 129.37% above its 52-week low.

31ec9b718887ecb3dabc5beb8a1c2fd9.png

The company, which operates in property and casualty insurance services, has a market cap of $10.07 billion and an enterprise value of $9.23 billion.

With a 0.51% stake,

Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Paul Tudor Jones (Trades, Portfolio) with 0.02% and Steven Cohen (Trades, Portfolio) with 0.01%.

Disclosure: I do not own any stocks mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

Rating:
0 / 5 (0 votes)

Please Login to leave a comment

Please Login to leave a comment

Author's Avatar
You can read about me on www.theextraincome.info, which gives suggestions on position trading.