Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

American International Group Inc (AIG), MGIC Investment Corp. (MTG), Prudential Financial Inc (PRU) Among Five Insurance Stocks that Billionaires Love

Page 1 of 2

The insurance industry is one that has provided solid returns to its investors over the years. It is one of the main segments of activity of Berkshire Hathaway, led by Warren Buffett, who over the years managed to build a strong insurance business that incorporates companies like General Re, GEICO, Netherlands-based NRG, and others. Aside from Mr. Buffett, investors that are more focused on equity are also betting on various public insurance companies. At Insider Monkey we track over 700 investment firms, including a bunch of funds managed by great investors who managed to build billions in fortune through picking great companies to invest in. Therefore, in this article we will take a look at five insurance companies that billionaires are keen on, among which are: American International Group Inc (NYSE:AIG)MGIC Investment Corp. (NYSE:MTG), and Prudential Financial Inc (NYSE:PRU).

American International Group

American International Group Inc (NYSE:AIG) is on the first spot, with 15 billionaires disclosing long equity positions, with an aggregate value of $2.19 billion. Aside from that, AIG is one of the top most popular stocks among all the funds that we track, with 116 funds reporting the company in their equity portfolios, while the aggregate value of their stakes amounts to over $11.65 billion. Among the investors of American International Group Inc (NYSE:AIG) are billionaires Leon Cooperman of Omega Advisors, which owns 4.01 million shares as of the end of 2014, and Dan Loeb of Third Point, which initiated a new position during the last quarter with 3.50 million shares.

AIG is one of the largest insurance companies in the US with a market cap of $76 billion. The stock has gained 12% over the last 52 weeks and doubled in the last three years. Earlier last year, Bruce Berkowitz, the manager of mutual fund Fairholme, said that he prefers American International Group because it is cheap in relation to its intrinsic value and he prefers to invest more money in American International Group Inc (NYSE:AIG) rather than in six other stocks. At the end of 2014, Fairholme disclosed holding 51.28 million shares of American International Group Inc (NYSE:AIG), the position being the largest in its equity portfolio.

MGIC Investment Corp. (NYSE:MTG) comes next on our list. As of the end of 2014, this $3 billion private mortgage insurer can be found in the equity portfolios of 57 funds from our database, including 12 firms led by billionaires. Overall, the funds that we track hold around $1.77 billion worth of MGIC Investment Corp’s stock, up from the previous quarter when 48 funds held $1.52 billion worth of shares. Billionaire John Paulson’s Paulson & Co. is one of the top shareholders of MGIC Investment Corp. (NYSE:MTG) Investment Corp and owns 14.40 million shares of the company, down by 14% over the quarter. Among other investors betting on the company are Marc Lasry’s Avenue Management, John Griffin’s Blue Ridge Capital, and Howard Marks’ Oaktree Capital.

MGIC Investment Corp. (NYSE:MTG) has recently reported its financial results for the fourth quarter and full-year 2014, showing a net profit of $0.64 per diluted share in 2014, which is the company’s first profitable year since 2006, as CEO Curt S. Culver stated during the earnings call. For the fourth quarter the company’s EPS went up to $0.74, from a breakeven quarter a year ago.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!