3 insurance stocks that sank in difficult economic times

According to the National Association of Insurance Commissioners, there were 5,929 insurance companies in the United States in 2020, including 2,476 property accident companies, 843 life / annual companies, 995 health companies, 81 fraternity insurance companies, 62 title insurance companies, and 245 insurance companies. 1,227 others.



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According to S&P Global Market Intelligence, total property accident cash and invested assets in 2020 were $ 2 trillion. A total of / 4.7 trillion in life / annual cash and invested assets and a total of $ 3 trillion in individual account assets and other investments by 2020. The cash and invested assets for both sectors were $ 9.7 trillion.

Sounds like an art to follow in this difficult time, doesn’t it? Let’s not know why you might want to buy insurance stock.

Why buy insurance stock?

In times of inflation, insurance companies can be a good investment because insurance stocks can grow as interest rates rise. (The relationship between interest rates and insurance companies goes like this: the higher the rate, the higher the increase.)

The insurance industry always operates in strong economies during recessions and has the potential to increase returns in the long run. Also, insurance companies can generate cash at low capital costs to convert it into other means of generating revenue.

Buy 3 insurance stocks

Let’s take a look at three insurance stocks to consider adding to your portfolio.

Humana Inc. (NYSE: HUM)

Humana Inc., headquartered in Louisville, Kentucky, is a health and wellness organization that offers medical and complementary benefit plans. Company:

  • Agreement with the Centers for Medicare and Medicaid Services to manage the limited-income New Eligible Transition Prescription Drug Plan program.
  • Agreements with various states to provide Medicaid, dual qualified and long-term support services.
  • Offers commercially fully insured medical and specialized health insurance benefits, including dental, vision and other complementary health benefits
  • Offers administrative services-only products for individuals and employer groups.
  • Offers military services, such as the TRICARE T2017 East Territory Agreement.

The company also offers pharmacy solutions, provider services and home solution services, such as home health and other services to its health plan members and third parties.

Humana’s results for the full year Q4 of 2021 and 2021 continue to be affected by the ongoing effects of the COVID-19 epidemic. The company reported a Q4 2021 loss of $ 0.11 per share and a consistent EPS of $ 1.24 on a GAAP basis. The full-year EPS on GAAP basis was $ 22.67 and the adjustment basis was $ 20.64, $ 23.08.

As of December 31, 2021, the company’s cash, cash equivalents and investment securities were $ 17.37 billion, down $ 1.75 billion from $ 19.12 billion as of September 2021. The company paid its shareholders a cash dividend of $ 91 million in Q4 2021 vs. $ 84 million compared to the previous quarter.

Progressive Corporation (NYSE: PGR)

Progressive Corporation, headquartered in Mayfield, Ohio, an insurance holding company, provides the following:

  • Personal auto insurance
  • Commercial auto insurance
  • Private residential and commercial property
  • General duties
  • Other specialized property-accident insurance products and related services

The company is divided into three categories, including personal auto and recreational vehicle (RV), personal auto insurance and written insurance for specialized line products, including insurance for motorcycles, ATVs, RVs, aquaculture, snowmobiles and related products.

The company offers auto-related primary liability and physical damage insurance and business-related general liability and property insurance for autos, vans, pick-up trucks, dump trucks, tractors, trailers and more. The company covers towing services and gas / service station businesses, as well as tow trucks and racks used in non-fleet and airport taxi and black-car services.

The company writes residential property insurance for homeowners, other property owners and tenants, as well as offers personal umbrella insurance and primary and additional flood insurance. The company also offers policy issue and claims adjustment services and acts as an agent for the homeowner’s general liability, workers’ compensation insurance and other products.

Despite a 13% increase in net premiums in the last quarter of 2021, Progressive Corporation’s Q4 2021 revenue fell 43%. Net revenue for the full year was 3.35 billion, down 41% from about 7 5.7 billion in 2020, and net premiums increased 14%. Net income fell 44% to $ 393.3 million in December alone.

However, Progressive has consistently sought cross-selling auto policy and Progressive Home Advantage, contributing to its incredible 3,260% return since 2000. It also reports monthly income, one of the few companies to do this. Progressive, for example, reported that February 2022 saw a year-on-year decline of 83% due to higher costs and a loss of net perception in securities, offering a transparent continuity that you would not find anywhere else.

Allstate Corporation (NYSE: ALL)

Northbrook, Illinois-based Allstate Corporation provides property and accident and other insurance products in the United States and Canada. The company offers:

  • Private passenger auto and homeowners insurance
  • Special auto products
  • Other personal line products
  • Homes built and individually designated private property
  • Commercial line products

It provides customer product protection plans and related technical support for mobile phones, consumer electronics, furniture and appliances as well as finance and insurance products, roadside assistance, device and mobile data collection services and more.

The company provides life, accident, serious illness, short-term disability and other health insurance products through call centers, agencies, financial experts, independent agents, brokers, wholesale partners through online and mobile applications.

For the full year 2021, the company’s consistent net earnings return on shareholders ’equity in 2021 was 16.9%, reflecting increased net investment earnings from strong performance-based results. Net investment income of 21 3.3 billion in 2021 surpassed আগের 1.7 billion the previous year due to exceptional performance-based results.

In Q4, Allstate saw total revenue of $ 13 billion, an increase of 18.7% over the previous quarter. Net income for ordinary shareholders increased $ 790 million in the fourth quarter of 2021, down $ 1.8 billion from the previous quarter.

Consistent net income was $ 796 million, or 75 2.75 per mixed share, but down from $ 1.6 billion generated in the previous quarter. The losses were due to non-catastrophic losses, partly offset by higher earned premiums.

Get on board with insurance stock

People still need insurance, even during low economic cycles. Therefore, it is worth your while to look at some insurance behemoths. However, do your research and make sure that these companies will fit well with your larger portfolio.

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