5 Insurance Companies Boosting Earnings

American Equity Investment makes the list

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Apr 13, 2021
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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.

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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.

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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.

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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.

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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.

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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.

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