Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Insurance Firms Are Still Worth a Go – RSA and Legal & General

By Malcolm Stacey

27 March 2014 07:40

Hello Share Tinklers: Shares in insurance companies are pretty volatile. You never know where you are with them. I hold stocks in two high profile companies the old Royal Insurance Company now RSA (RSA) and Legal and General (LGEN.).

Already a member? Sign in

• All premium articles

• Tom Winnifrith’s Bearcast

• Access to all the entire nearly 13 year archive

• ShareProphets Daily Newsletter

Cancel any time

This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

Comments

wildrides

27 March 2014, 09:59

My sympathies regards Lloyds W……king Group . Looks like we have a bit of a wait until the general public get a sniff . I might get back in when its settled again to a new base ……… surely the only way is up now from 75p ?
wildrides

27 March 2014, 10:07

Never mind Malc …….. we can console ourselves with TYM whose progress is relentless at the MO . Still cant work out why EMED is so dam cheap when its a nats whisker from permits ? Seems like a bargin price to me at 9.2 p ?
Libero

27 March 2014, 10:58

Hi Malcolm,

Have you had a look at Novea? It’s a non-life insurance company that is looking cheap. Their preliminary results state that profit before tax has risen 7.2%, EPS grew 13.6%, and their insurance operation is increasingly profitable with their combined ratio dropping to 85.7% for 2013.

Their P/E ratio is 11.6, below the sector average of 13 or so. If we then take its liabilities and cash into account, Novea looks even cheaper seeing as the company’s EV/EBIT ratio of just 7.1

Combine that with its market-beating combined ratio and a yield of ~4% for last year (over 7% if you count the special divi) and Novea is looking fairly undervalued at a first glance.

Well worth a look for those hunting for a low risk high-yield investment, don’t you think Malcolm?

Kind regards,

Libero