04-01-2022, 04:51 AM
(03-31-2022, 06:12 PM)jalanlong Wrote: How does everyone feel about insurance stocks? Examples like MetLife, Prudential, Old Republic, Allstate etc. They always have PEs in the single digits and pay a decent yield. I know during the 2008 financial crisis some of them had drawdowns of close to 70%. However, their dividends continued to grow during that time.
When I was putting my IRA together much to my surprise I bought FAF. Was the only property/casualty company I ended up owning. I have a few health insurance companies but those are a different beast.
Biggest issue for me is figuring out the balance sheets, particularly capital adequacy. Takes a lot of digging and even then I've not been as comfortable with that as I'd like to be. Sure, there's the BCAR but like a lot of rating systems, that just scratches the surface. Plus, while you can look for those for individual companies I haven't come across a free listing.