Insurance Companies Now Trading Below Book Value And Paying Dividends

It’s not as exciting a sector as the currently hyped-up tech sector, but for those investors looking at basic value as outlined in the works of Benjamin Graham, these insurance stocks may be worth considering. Each one is now “on sale” at a below-book-value price and each one pays dividends.

Some of the low valuation may be attributable to the likely continuation of interest rates hikes by the Fed. Like all sectors of the finance industry, the expectation of higher yields has an effect on rate-sensitive insurance companies. Other factors play into the equation for each, of course, but that’s a central kind of issue right now.