Insurance Watch List: February 2016

Performance Review

From our watch list dated February 28, 2014, we have the following performance of the listed stocks:

Symbol Name 2014 2016 % change
BRO Brown & Brown 30.1 31.48 4.58%
WSH Willis Group 41.16 44.61 8.38%
XL XL Group plc 30.4 34.28 12.76%
PKIN Pekin Life 11.99 12.4 3.42%
AXS Axis Capital 43.97 53.97 22.74%

The average gain for the listed stocks was +10.38% as compared to the iShares U.S. Insurance ETF (IAK) which gained +4.25% over the same period of time (February 28, 2014 to February 21, 2016).  Although we use IAK as a benchmark for performance, it should be noted that companies like WSH [now Willis Tower Watson (WLTW) after the merger in 2015], XL and AXS are not U.S. based insurance companies.   The stock of interest at the time was Brown & Brown (BRO) which increased +4.58%.

Insurance Watch List

symbol name price p/e eps div yield p/b % from yr low
CNA CNA Financial Corporation 28.21 15.94 1.77 1 3.2 0.65 0.14%
AIG AIG, Inc. 51.53 31.23 1.65 1.28 2.46 0.69 2.28%
AFSI AmTrust Fin.  Services, Inc. 25.06 8.95 2.8 0.6 2.36 1.96 3.55%
ALIZF Allianz SE 149.45 9.22 15.72 8.06 5.52 0.97 4.15%
AEG AEGON N.V. 4.79 - 0.21 0.27 5.64 8 4.59%
ZFSVF Zurich Insurance Group AG 215.51 10.51 20.5 0 0 1.02 5.46%
BRK-A Berkshire Hathaway Inc. 197,310.23 14.24 13,852.27 - - 1.3 5.57%

Analyst Estimates

Below is a snapshot of the analysts low estimated earnings assuming a price-to-earnings ratio of 15 for the remainder of 2016 and the percentage change in price that is implied based on these estimates.

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