StockStory Highlights Two Insurance Stocks with Strong Fundamentals and One to Avoid

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Summary · why it matters

StockStory identifies two insurance stocks with durable advantages and one facing headwinds. Primerica and RenaissanceRe are highlighted for their solid fundamentals, while MGIC Investment is flagged as a stock to sell. Primerica posted annual revenue growth of 9% over the last two years and expanding pre-tax profits, while RenaissanceRe achieved 17.4% annualized net premiums earned growth over five years and a pre-tax profit margin expansion of 27.8 percentage points. In contrast, MGIC Investment saw net premiums earned contract by 1.2% annually over five years and earnings per share growth of just 9.4% annually over the last two years, underperforming the sector. The broader insurance industry has shed 4.9% over the past six months, compared to the S&P 500's 9% gain.

Impact on assets 3

Financials± Mixed
MGIC Investment Corp
MTG
▼ NegativeCapitalrelevance

MGIC Investment is flagged as a stock to sell due to contracting net premiums earned and underperforming earnings growth.

Primerica Inc
PRI
▲ PositiveCapitalrelevance

Primerica is highlighted for strong fundamentals with 9% annual revenue growth and expanding pre-tax profits.

Climate Adaptation & Water▲
Renaissancere Holdings Ltd
RNR
▲ PositiveCapitalrelevance

RenaissanceRe is highlighted for strong fundamentals with 17.4% annualized net premiums earned growth and expanding pre-tax profit margins.