This is an outstanding strategy to make an investment in insurance stocks for the purpose of long-term gains or profits and this sector in anti-fragile and strong even during this time of global uncertainty and crisis. This insurance sector is vast and possesses the capability for growth and innovation. On annual basis, this sector itself is generating revenues of up to $5 trillion. The outbreak of the COVID-19 pandemic has compelled all people to prepare for various types of risks and uncertainties. Individuals, big and small organizations, NGOs, and governments will begin to employ various processes of risk mitigation and financial protection to predict and avert risks and uncertainties. This would assist insurance firms to expand their footprints and businesses. During the last few years, insurers have recognized different key insights that would assist them to grow in near future. I am writing this post after reading a post by Insider Monkey on Yahoo regarding Top 8 Insurance Stocks. According to Insider Monkey’s report:
“Global penetration of life insurers fell to 3% over the last 10 years, while premium growth in the developed markets is struggling to meet acceptable metrics. Globally depressed interest rates and the coronavirus-triggered uncertainties have also battered investment portfolio returns. But some promising growth catalysts are on the horizon for insurance stocks. McKinsey said in a report that insurance companies will benefit from the rising customer demand, especially after the coronavirus outbreak.”
Let’s begin our list of Top 8 insurance companies. The first one on the list is MetLife Inc. This is a holding firm for Metropolitan Life Insurance Company that is considered as the biggest international provider of annuities, insurance, and employee benefit programs. The next company on our list is American International Group Inc., which is the key insurance firm with operational activities in 80 different nations. EPS $0.81 has been reported by AIG in the Q3 of 2020 which is above the estimated value of $0.55 by Wall Street. During this period the total net income through investment totaled around $3.20 billion. AIG shares, in October, rallied when the company made the announcement of separating its retirement and life business activities from the parent company. According to Joshua Shanker, analyst of Bank of America, this particular decision will unlock value, increase shareholder returns, and focus.
Do you have an interest in learning more about the best insurance companies? Then jump directly to 10 Best Insurance Stocks To Buy Now.