Performance Review
Below is the performance of the June 25, 2017 Insurance Watch List.
| symbol |
name |
6/25/2017 |
6/1/2018 |
% change |
| GTS |
Triple-S Management Corporation |
16.97 |
36.7 |
116.26% |
| UNAM |
Unico American Corporation |
9.28 |
8.15 |
-12.18% |
| GLRE |
Greenlight Capital Re, Ltd. |
20.55 |
14.7 |
-28.47% |
| FRFHF |
Fairfax Financial Holdings Limited |
420.92 |
556.7 |
32.26% |
| MHLD |
Maiden Holdings, Ltd. |
11.2 |
8.7 |
-22.32% |
| BWINA |
Baldwin & Lyons, Inc. |
23.9 |
23.47 |
-1.80% |
| DGICA |
Donegal Group Inc. |
15.93 |
13.99 |
-12.18% |
| ANAT |
American National Insurance Company |
114.56 |
120.3 |
5.01% |
| FFG |
FBL Financial Group, Inc. |
60.35 |
79.9 |
32.39% |
| CINF |
Cincinnati Financial Corporation |
71.23 |
70.18 |
-1.47% |
| RLI |
RLI Corp. |
55.04 |
66.13 |
20.15% |
| AMSF |
Amerisafe, Inc. |
55.9 |
60 |
7.33% |
| NSEC |
The National Security Group, Inc. |
14.04 |
15.85 |
12.89% |
| PKIN |
Pekin Life Insurance Company |
12.65 |
12.7 |
0.40% |
| NAVG |
The Navigators Group, Inc. |
54.8 |
59.5 |
8.58% |
| WTM |
White Mountains Insurance |
862.44 |
904.4 |
4.87% |
| |
|
|
average |
10.11% |
| |
|
|
|
|
| IAK |
iShares US Insurance ETF |
|
|
3.37% |
The performance of the entire watch list was better than the iShares U.S. Insurance ETF gain of +3.37%. The ranked performance by the top five, top 1st, 2nd, & 3rd and 2nd, 3rd, & 4th is listed below for the various fundamental categories.
| low p/e |
% change |
|
low p/b |
% change |
|
low yield |
% change |
| WTM |
4.87% |
|
GTS |
116.26% |
|
WTM |
4.87% |
| FFG |
32.39% |
|
ANAT |
5.01% |
|
NAVG |
8.58% |
| AMSF |
7.33% |
|
UNAM |
-12.18% |
|
PKIN |
0.40% |
| ANAT |
5.01% |
|
NSEC |
12.89% |
|
NSEC |
12.89% |
| BWINA |
-1.80% |
|
GLRE |
-28.47% |
|
AMSF |
7.33% |
| top 5 |
9.56% |
|
top 5 |
18.70% |
|
top 5 |
6.81% |
| top 1,2,3 |
14.86% |
|
top 1,2,3 |
36.37% |
|
top 1,2,3 |
4.61% |
| top 2,3,4 |
14.91% |
|
top 2,3,4 |
1.91% |
|
top 2,3,4 |
7.29% |
| high p/e |
% change |
|
high p/b |
% change |
|
high yield |
% change |
| MHLD |
-22.32% |
|
RLI |
20.15% |
|
MHLD |
-22.32% |
| GTS |
116.26% |
|
AMSF |
7.33% |
|
BWINA |
-1.80% |
| GLRE |
-28.47% |
|
PKIN |
0.40% |
|
DGICA |
-12.18% |
| RLI |
20.15% |
|
CINF |
-1.47% |
|
ANAT |
5.01% |
| NAVG |
8.58% |
|
NAVG |
8.58% |
|
FFG |
32.39% |
| top 5 |
18.84% |
|
top 5 |
7.00% |
|
top 5 |
0.22% |
| top 1,2,3 |
21.83% |
|
top 1,2,3 |
9.29% |
|
top 1,2,3 |
-12.10% |
| top 2,3,4 |
35.98% |
|
top 2,3,4 |
2.09% |
|
top 2,3,4 |
-2.99% |
The category with the most underperformance was the high yield group of insurance stocks with +0.22%, –12.10%, and –2.99% in the top 5, top 1,2,3 and top 2,3,4 groupings, respectively. The category killer was the low p/e insurance stocks. While the high p/e stocks had higher average gains, the low p/e stocks didn’t have a stock with triple digit gains (GTS) which skews the failings of double digit losing stocks (MHLD and GLRE) in the high p/e category.
Top Watch Review
In our June 25, 2017 posting, we highlighted a couple of stocks that appeared to be worth avoiding as a first purchase or worth selling the principal if a current holding.
At the time we mentioned that MGIC Corp. (MTG) had just achieved a gain of +80% from the 2016 low. In spite of this fact, MTG managed to runup another +47% by late January 2018. Since that time, MTG has managed to land at a breakeven level with the June 25, 2017 posting.
The next stock we covered for avoiding was Investors Title Co. (ITIC). the stock has traded in a tight ranged over the last year and stands at a –4% decline in price from the June 2017 posting.
Overall, the top watch recommendations were appropriate only in so far as there were compelling alternative investment opportunities.
