StockStory flags Selective Insurance, Radian Group, and First American Financial as insurance stocks to avoid

StockStory··Read original
2▲0 ▼3Impact / 5
Summary · why it matters

StockStory identified three insurance stocks it is skeptical of: Selective Insurance Group, Radian Group, and First American Financial. The firm cited concerns such as slowing sales growth, declining pre-tax profit margins, and earnings growth that lagged peer averages. Selective Insurance Group, with a market cap of $5.50 billion, saw its pre-tax profit margin fall by 3.2 percentage points over five years and estimated sales growth of just 1.7% for the next 12 months. Radian Group, valued at $4.54 billion, experienced stagnant sales and net premiums earned over five years, with annual EPS growth of only 6.2%. First American Financial, at a $6.61 billion market cap, posted stagnant net premiums earned and annual EPS growth of just 1.4% over five years, along with slower book value per share growth compared to peers.

Impact on assets 3

Financials▼ · 3 stocks
First American Corporation
FAF
▼ NegativeCapitalrelevance

StockStory flags First American Financial due to stagnant net premiums earned, slow EPS growth, and weaker book value growth vs peers.

Radian Group Inc
RDN
▼ NegativeCapitalrelevance

StockStory flags Radian Group for stagnant sales and net premiums earned, with low EPS growth of 6.2% annually.

Selective Insurance Group, Inc.
SIGI
▼ NegativeCapitalrelevance

StockStory flags Selective Insurance Group for declining pre-tax profit margins and slow estimated sales growth of 1.7%.

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