Insurance Industry - Finance Sector
- Port of Series Finance Sector Series
Insurance TRV CINF CB
TRV R5- least favored so value?
Travelers Cos – Finance Sector Majority of their revenues are in the US The Finance sector tends to do better in strong dollar environments Insurance is a necessity for business and contracts are inflation adjusted based on the insured property Repurchased 3% of outstanding shares in last 12 months
AFL x c48 m36b y2.2% 36y/ d=$1.15
- Expect EPS 5yr 9%
Buying back $1.3b-$1.7b in 2019
Supplemental insurance company – popularized by the loud Aflac duck – with roots going back to 1955 that covers numerous workplace offerings, such as accident, short-term disability and life insurance.
CINF R5 c82 M=13b y=2.7% 59y/ ~6%/yr pay=25% div=$2.1
- Cincinnati Financial
AIZ R5 c106 m7 y2% +23% pay=30%
Leading provider of specialized insurance products in North America and some overseas markets. The company provides lender-placed homeowner’s insurance and renters insurance, and insures the extended warranties and service contracts for vehicles, appliances and mobile devices. Assurant’s customers include 9 of the top 10 auto-makers, property and casualty insurance companies and mortgage servicing providers.
Last quarter, Assurant closed the acquisition of The Warranty Group, a move that is expected to deepen the company’s global footprint, extend its share in the vehicle protection market with new clients and distribution channels, reduce risk exposure and enable $60 million of operating synergies this year and next year.
Income (excluding catastrophic losses) rose 22% last year, and the company returned more than $510 million to shareholders through share repurchases and dividends. Over the past two years, Assurant has returned more than †$1.5 billion to shareholders. The company’s income improved 34% year-over-year during Q2 2018, and the company is guiding for full-year earnings 20%-25% higher, fueled by contributions from the TWG acquisitions, a lower effective tax rate and $10 million of synergies.
CB R5 c130 m62b y=2.3 25y/ div=$2.9 pay=28%
- World’s largest publicly traded property and casualty insurance
- global strong$ operations in 54 countries and territories