10 Best Insurance Stocks Under $70

In this article, we discuss 10 best insurance stocks under $70.

The insurance sector has been one of the standout performers in a volatile marketplace in the United States over the past few months, demonstrating remarkable flexibility and resilience in overcoming a series of challenges, including the impact of the pandemic and the economic fallout from the Russian invasion of Ukraine. According to a report by research firm Deloitte, this outperformance continues to be threatened by rising inflation, interest rates, loss costs, the looming threats of recession, climate change, and geopolitical upheaval. 

Some of the best insurance companies include Humana Inc. (NYSE:HUM), Cigna Corporation (NYSE:CI), and MetLife, Inc. (NYSE:MET). Deloitte estimates that property-casualty price hikes were among the primary drivers pumping up premium volume and sending US consolidated surplus over the $1 trillion mark for the first time, even as inflation was driving loss costs even higher and faster in most markets. 

Per the research firm, as of May 12, average replacement costs were up 16.3% — nearly twice the Consumer Price Index rise. These numbers highlight the core contention that inflation is continuing to hamper non-life profitability even while boosting prices and top-line growth in the insurance industry. Research firm RSM claims that two key trends that investors should monitor in the space moving forward include artificial intelligence and machine learning. These, per RSM, can provide flexibility that allows insurers to innovate and transform faster. 

Our Methodology

The companies that operate in the insurance sector and are trading at under $70 were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

Best Insurance Stocks Under $70

10. Aegon N.V. (NYSE:AEG)

Number of Hedge Fund Holders: 7  

Share Price as of October 13: $3.77   

Aegon N.V. (NYSE:AEG) provides insurance, pensions, and asset management services in the Americas, the Netherlands, and the United Kingdom. It is one of the best insurance stocks to invest in. The shares of the firm have risen recently after the company announced that it would buy back $413 million of debt and $300 million of common shares after it completed the sale of its Hungarian business for gross proceeds of EUR 620 million. 

On September 13, Societe Generale analyst Nick Holmes upgraded Aegon N.V. stock to Buy from Hold with an unchanged price target of EUR 5.25, noting that the company has a strong case for additional buybacks in 2023.

At the end of the second quarter of 2022, 7 hedge funds in the database of Insider Monkey held stakes worth $16.9 million in Aegon N.V., compared to 7 the preceding quarter worth $34.4 million.

Just like Humana Inc., Cigna Corporation, and MetLife, Inc., Aegon N.V. is one of the best insurance stocks to buy now. 

9. American Equity Investment Life Holding Company (NYSE:AEL)

Number of Hedge Fund Holders: 14  

Share Price as of October 13: $38.75     

American Equity Investment Life Holding Company (NYSE:AEL) provides life insurance products in the United States. It is one of the top insurance stocks to invest in. On August 8, the company posted earnings for the second quarter of 2022, reporting earnings per share of $0.98, beating expectations by $0.27. The revenue over the period was $121.4 million. 

On August 11, Truist analyst Mark Hughes maintained a Buy rating on American Equity Investment Life Holding Company stock and raised the price target to $51 from $45, highlighting the earnings beat of the company in Q2 2022.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Pzena Investment Management is a leading shareholder in American Equity Investment Life Holding Company, with 1.7 million shares worth more than $63.7 million. 

In its Q2 2022 investor letter, First Pacific Advisors, an asset management firm, highlighted a few stocks and American Equity Investment Life Holding Company was one of them. Here is what the fund said:

“American Equity Investment Life Holding Company, a leading writer of fixed index annuities, has continued to transition to its American Equity Investment (AEL) 2.0 business model. The plan’s main goals are to diversify the company’s assets into a broader array of investments, including private debt through strategic partnerships, and to increase its use of reinsurance to free up capital. We think this is an interesting, but somewhat aggressive plan. Thus far, the results have been impressive, but we continue to monitor the credit quality of their assets as they move toward achieving their target of having 40% of their portfolio invested in private assets, up from 15.4%.”

8. Manulife Financial Corporation (NYSE:MFC)

Number of Hedge Fund Holders: 15

Share Price as of October 13: $21.23     

Manulife Financial Corporation (NYSE:MFC) provides financial products and services in Asia, Canada, the United States, and internationally. It is one of the premier insurance stocks to invest in. On June 29, the company announced that the application to gain full control of its Chinese joint venture was accepted by Chinese regulators as the world’s second largest economy continues to open up its financial sector to allow foreign firms full ownership of their operations there. 

On July 27, Scotiabank analyst Meny Grauman upgraded Manulife Financial Corporation stock to Outperform from Sector Perform with an unchanged price target of C$27, noting that analysts remain constructive on the insurance sector despite falling equity markets. 

At the end of the second quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $155 million in Manulife Financial Corporation, compared to 19 in the previous quarter worth $517.5 million.

In its Q2 2022 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and Manulife Financial Corporation was one of them. Here is what the fund said:

“Manulife Financial Corporation, the Canadian life insurer operating primarily in North America and Asia, is a new holding. Manulife offers a full suite of life insurance products as well as retirement and wealth management services. While the wealth management and retirement products appeal to the aging populations of the Western world, long-term life insurance products address the needs of the growing number of middle-class families in places like China and southeast Asia. COVID-19-induced lockdowns in China brought the shares down to a significant discount to our estimate of long-term value. The holding now serves as a nice diversifier to our Asia-centered insurers AIA and Ping An.”

7. Unum Group (NYSE:UNM)

Number of Hedge Fund Holders: 25     

Share Price as of October 13: $40.66  

Unum Group (NYSE:UNM) provides financial protection benefit solutions primarily in the United States, the United Kingdom, and Poland. It is one of the major insurance stocks to invest in. On September 14, Steve Zabel, the CFO of the firm, said that the relationship between IT and finance at the firm has solidified over the years with a focus on accountability. He added that finance has gotten more involved directly and was not only prioritizing where to spend dollars, but also focusing on value creation. 

On September 22, Raymond James analyst Wilma Burdis initiated coverage of Unum Group stock with a Market Perform rating and no price target, noting that the company’s valuation reflects an expectation for continued reserve strengthening within the LTC block. 

At the end of the second quarter of 2022, 25 hedge funds in the database of Insider Monkey held stakes worth $436 million in Unum Group, compared to 30 in the previous quarter worth $323.5 million.

6. Lincoln National Corporation (NYSE:LNC)

Number of Hedge Fund Holders: 34  

Share Price as of October 13: $48.22   

Lincoln National Corporation (NYSE:LNC) operates multiple insurance and retirement businesses. Some of the insurance products offered by the firm include life insurance products, including term insurance, such as single and survivorship versions of universal life insurance; variable universal life insurance, indexed universal life insurance products, and critical illness and long-term care riders.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Lyrical Asset Management is a leading shareholder in Lincoln National Corporation, with 3.9 million shares worth more than $185 million. 

In addition to Humana Inc., Cigna Corporation, and MetLife, Inc., Lincoln National Corporation is one of the best insurance stocks to buy now according to hedge funds. 

In its Q2 2022 investor letter, Chartwell Investment Partners, an asset management firm, highlighted a few stocks and Lincoln National Corporation was one of them. Here is what the fund said:

“The three worst-performing stocks in the Dividend Equity accounts includes Lincoln National (NYSE:LNC, 1.9%), down 27.9%. Lincoln’s quarterly results were weak in both life insurance and annuity sales, but we remain positive on the stock given the company’s ongoing de-risking initiatives, leverage to higher rates, and discounted valuation.”

5. Fidelity National Information Services, Inc. (NYSE:FIS)

Number of Hedge Fund Holders: 67   

Share Price as of October 13: $38.87 

Fidelity National Information Services, Inc. (NYSE:FIS) provides technology solutions for merchants, banks, and capital markets worldwide. It is one of the best insurance stocks to invest in. On August 4, Fidelity National Information Services, Inc. posted earnings for the second quarter of 2022, reporting earnings per share of $1.90, beating estimates by $0.29. The revenue over the period was $2.63 billion. 

On September 23, Deutsche Bank analyst Bryan Keane maintained a Hold rating on Fidelity National Information Services, Inc. stock and lowered the price target to $90 from $116. 

At the end of the second quarter of 2022, 67 hedge funds in the database of Insider Monkey held stakes worth $3.3 billion in Fidelity National Information Services, Inc., compared to 68 in the preceding quarter worth $3.95 billion. 

In its Q1 2022 investor letter, Weitz Investment Management, an asset management firm, highlighted a few stocks and Fidelity National Information Services, Inc. was one of them. Here is what the fund said:

“Other fiscal-year detractors included Fidelity National Information Services. FIS has been our most disappointing investment in the Covid era. Unlike Meta, the stock trades well below our average cost. The business itself has been relatively durable, but the stock certainly has not. While the core elements of our bullish thesis remain firmly intact, hindsight tells us that we could have waited for a better entry point. From today’s stock price, which is what matters now, we think the risk/reward balance is favorable.”

4. The Hartford Financial Services Group, Inc. (NYSE:HIG)

Number of Hedge Fund Holders: 28 

Share Price as of October 13: $63.67 

The Hartford Financial Services Group, Inc. (NYSE:HIG) provides insurance and financial services to individual and business customers internationally. It is one of the top insurance stocks to invest in. On August 1, Barclays analyst Tracy Benguigui maintained an Overweight rating on The  Hartford Financial Services Group, Inc. stock and lowered the price target to $78 from $80, appreciating the second quarter earnings of the firm.

Among the hedge funds being tracked by Insider Monkey, Columbus-based investment firm Diamond Hill Capital is a leading shareholder in The Hartford Financial Services Group, Inc., with 3.5 million shares worth more than $230 million. 

In its Q3 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The Hartford Financial Services Group, Inc. was one of them. Here is what the fund said:

“Financials continued to gain from the economic recovery from COVID-19. Insurance companies, such as The Hartford Financial Services Group, Inc., benefited from rate increases and margin improvements during the quarter, as well as historically high retention and premium growth driving an improvement in ROE.”

3. Aflac Incorporated (NYSE:AFL)

Number of Hedge Fund Holders: 32 

Share Price as of October 13: $57.41   

Aflac Incorporated (NYSE:AFL) provides supplemental health and life insurance products. It is one of the premier insurance stocks to invest in. On August 18, the company announced that it would be adding mental health conditions to its individual short term disability insurance product coverage. This coverage comes after preliminary data revealed that 53 million adults in the US experienced mental illness in 2020, of which 46% of adults received treatment. 

Among the hedge funds being tracked by Insider Monkey, London-based firm Marshall Wace LLP is a leading shareholder in Aflac Incorporated, with 1.1 million shares worth more than $61.7 million. 

In its Q2 2021 investor letter, Madison Funds, an asset management firm, highlighted a few stocks and Aflac Incorporated was one of them. Here is what the fund said:

“This quarter we are highlighting Aflac Incorporated as a relative yield example in the Financial sector. AFL is a leading provider of life and supplemental medical insurance in Japan and the U.S. AFL products offer financial protection against loss of income for policy holders based on qualifying health events. Aflac Japan generates approximately 70% of total revenues, and the company has dominant market share in Japan. In the U.S., AFL provides voluntary insurance for policy holders at businesses with products sold through payroll deduction by its large sales force which sells primarily through face-to-face interactions. We believe AFL’s dominant market position in Japan and its large U.S. sales force create a sustainable competitive advantage for the company.

Our thesis on AFL is that its sales will recover from the impact of the COVID pandemic, and it will return significant amount of capital to shareholders. Sales were negatively impacted in both Japan and the U.S. but appear to be in early stages of recovering. We believe sales will improve further as economies open and new products are introduced in Japan. In the U.S., agents will be able to return to face-to-face interactions as people get vaccinated, something that was restricted last year (…read more)

2. MetLife, Inc. (NYSE:MET)

Number of Hedge Fund Holders: 36

Share Price as of October 13: $62.58      

MetLife, Inc. is a financial services company that provides insurance, annuities, employee benefits, and asset management services worldwide. It is one of the major insurance stocks to invest in. On August 29, the company revealed that it had purchased Affirmative Investment Management, a specialist in global ESG and fixed income investment manager. The move is part of a plan to strengthen the environmental, social, and governance investments and reporting capabilities of the former. 

On September 22, investment advisory Raymond James initiated coverage of MetLife, Inc. stock with a Market Perform rating and a $73 price target. Analyst Wilma Burdis issued the ratings update. 

At the end of the second quarter of 2022, 36 hedge funds in the database of Insider Monkey held stakes worth $613 million in MetLife, Inc., compared to 39 in the preceding quarter worth $945.5 million. 

1. Voya Financial, Inc. (NYSE:VOYA)

Number of Hedge Fund Holders: 36  

Share Price as of October 13: $62.38    

Voya Financial, Inc. (NYSE:VOYA) operates as a retirement, investment, and employee benefits company in the United States. It is one of the elite insurance stocks to invest in. On August 2, the company announced that Voya Investment Management, the asset management business of the firm, had agreed to acquire Czech Asset Management, a private credit asset manager. The terms of the deal were not disclosed. The deal is expected to close in the fourth quarter of 2022. 

On September 22, Raymond James analyst Wilma Burdis initiated coverage of Voya Financial, Inc. with a Strong Buy rating and an $84 price target, noting that the company’s high quality Wealth Solutions and Investment Management businesses were poised for growth. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Pzena Investment Management is a leading shareholder in Voya Financial, Inc., with 4.7 million shares worth more than $279.7 million.  

You can also take a peek at 9 Best Gun Stocks to Buy In 2022 and 10 Best Junior Mining Gold Stocks to Buy in 2022.

Follow Insider Monkey on Twitter

Suggested Articles:

• 10 Most Anticipated Earnings to Watch in October
• 11 Best Meme Stocks To Buy Now
• Carl Icahn Stock Portfolio: Top 12 Picks

This article is originally published at Insider Monkey.