The following is the performance of the Insurance Watch List stocks that we published in October 2016.
|THG||The Hanover Insurance Group, Inc.||78.97||97.68||23.69%|
|HALL||Hallmark Financial Services Inc.||10.25||11.59||13.07%|
|CNO||CNO Financial Group, Inc.||15.67||24.04||53.41%|
|ORI||Old Republic International Corp.||18.32||19.6||6.99%|
The average return for the four stocks was +24.29% as compared to the iShares Dow Jones US Insurance Index ETF (IAK) gain of +20.27%. The analysts called the performance of the stocks fairly well as indicated in the chart below.
Of the four stocks, only Hallmark Financial Services (HALL) was not able to exceed expectations (assuming the low estimate and the price of the stock maintained the same p/e ratio).
In our “Sell the Principal” section we outlined the stocks that we thought investors should consider selling the principal as the price of the stocks had exceeded all reasonable one year gains. Below is the performance of the list of stocks in the order as presented at the time.
|Syncora Holdings Ltd.||1.35||2.06||52.59%|
|Genworth Financial, Inc.||3.63||-28.12%|
|Crawford & Company||11.89||1.80%|
|Hilltop Holdings Inc.||23.15||26.08||12.66%|
|Lincoln National Corporation||48.9||75||53.37%|
|Endurance Specialty Holdings Ltd.||92.98||1.19%|
|Principal Financial Group Inc.||52.33||66.65||27.36%|
|Kingsway Financial Services Inc.||5.95||5.31%|
|National Interstate Corporation||32||-1.30%|
|Stewart Information Services Corporation||38.01||-18.01%|
The entire list gained an average of +13.76% as compared to the iShares Dow Jones US Insurance Index ETF (IAK) gain of +20.27%. Only four stocks exceeded the performance of IAK (UNM, LNC, PFG, and SYCRF). Meanwhile, the remaining list of stocks performed well below the +20.27%. More than half the list showed below average or negative returns. This month’s “Sell the Principal” list has refined how the data is interpreted with the stated goal of highlighting those stocks expected to register negative returns after a review in October 2018.