The U.S. health insurance industry is one of the largest in the world and that’s why we look at the 11 best insurance companies to invest in 2017. The U.S. life and health insurance industry recorded a growth of over 73% y/y in the first-quarter of 2017. The U.S. life segment is highly competitive and fragmented after a series of mergers and acquisitions that the industry witnessed. The demand for healthcare insurance is poised to increase with a growing aging U.S. population. The U.S. health insurance flourished under “Obamacare” with more than 80% of Americans being covered by some kind of public or private health insurance.
The Obamacare (Patient Protection and Affordable Care Act and The Health Care and Education Reconciliation Act of 2010) enacted significant reforms to various aspects of the U.S. health insurance industry. However, much of this is going to change under the American Health Care Act (AHCA) also referred to as “Trumpcare”. It is expected that the bill if passed could lead to 23 million people losing healthcare coverage by 2026.
You might also want to check out our list on the 10 Largest Health Insurance Companies in America for further insurance reading.
The bill is expected to reduce government spending but will increase costs for older, sicker people and people in the low-income bracket. The insurance markets in many states stand a chance of disruption too. It will get difficult for people in poor health to buy total coverage in some states, after the amendment. All these regulatory changes are deemed to impact the overall industry in a big way. It will, therefore, be difficult for investors to pick the best insurance companies to invest in 2017 amongst such uncertainties.
Over the next few pages, we have analyzed those best insurance companies for investing based on hedge fund sentiment. We have selected the largest insurance companies based on their market capitalization values and their subscriber base. The companies are then ranked based on their popularity amongst the hedge fund community i.e. the most number of hedge funds buying an insurance stock ranks #1 on our list. Hedge funds have the resources to spend on research, experts, and in some cases inside information to determine the best insurance companies to invest in 2017.
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Below is our list of the best insurance companies to invest in 2017 according to hedge funds.
11. Triple-S Management Corporation (NYSE:GTS)
– Number of Hedge Funds With Long Positions (as of March 31): 12
– Aggregate Value of Hedge Funds’ Holdings (as of March 31): $74.90 million
With 12 hedge funds holding long positions in the stock, Triple-S Management Corporation (NYSE:GTS) ranks 11th on our list of 11 best insurance companies to invest in 2017. Triple-S Management is a Puerto Rico-based American health insurance provider offering a broad portfolio of managed care and related products in the Commercial, Medicaid and Medicare markets. With nearly six decades in the insurance business, the company has gained a substantial 25% market share in Puerto Rico providing insurance services to approximately 1.2 million citizens. Lakewood Capital is the most notable hedge fund investor in GTS.
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