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Yahoo
26-05-2025
- Business
- Yahoo
Is SPDR S&P Insurance ETF (KIE) a Strong ETF Right Now?
A smart beta exchange traded fund, the SPDR S&P Insurance ETF (KIE) debuted on 11/08/2005, and offers broad exposure to the Financials ETFs category of the market. Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy. Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency. If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies. This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics. This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results. The fund is managed by State Street Global Advisors, and has been able to amass over $938.93 million, which makes it one of the average sized ETFs in the Financials ETFs. KIE seeks to match the performance of the S&P Insurance Select Industry Index before fees and expenses. The S&P Insurance Select Industry Index represents the insurance segment of the S&P Total Market Index. Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same. Annual operating expenses for KIE are 0.35%, which makes it one of the least expensive products in the space. KIE's 12-month trailing dividend yield is 1.63%. ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis. This ETF has heaviest allocation in the Financials sector - about 100% of the portfolio. Taking into account individual holdings, Palomar Holdings Inc (PLMR) accounts for about 2.24% of the fund's total assets, followed by Oscar Health Inc Class A (OSCR) and Wr Berkley Corp (WRB). The top 10 holdings account for about 20.71% of total assets under management. So far this year, KIE has added roughly 2.65%, and was up about 16.23% in the last one year (as of 05/26/2025). During this past 52-week period, the fund has traded between $48.97 and $62.03. The ETF has a beta of 0.76 and standard deviation of 18.35% for the trailing three-year period, making it a medium risk choice in the space. With about 55 holdings, it effectively diversifies company-specific risk. SPDR S&P Insurance ETF is a reasonable option for investors seeking to outperform the Financials ETFs segment of the market. However, there are other ETFs in the space which investors could consider. Invesco KBW Property & Casualty Insurance ETF (KBWP) tracks KBW Nasdaq Property & Casualty Index and the iShares U.S. Insurance ETF (IAK) tracks Dow Jones U.S. Select Insurance Index. Invesco KBW Property & Casualty Insurance ETF has $483 million in assets, iShares U.S. Insurance ETF has $819.18 million. KBWP has an expense ratio of 0.35% and IAK charges 0.39%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Financials ETFs. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR S&P Insurance ETF (KIE): ETF Research Reports W.R. Berkley Corporation (WRB) : Free Stock Analysis Report iShares U.S. Insurance ETF (IAK): ETF Research Reports Invesco KBW Property & Casualty Insurance ETF (KBWP): ETF Research Reports Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report Oscar Health, Inc. (OSCR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
10-04-2025
- Business
- Yahoo
The Progressive Corporation (PGR): One of the Best Insurance Stocks to Buy According to Hedge Funds
We recently published a list of the 10 Best Insurance Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where The Progressive Corporation (NYSE:PGR) stands against the other insurance stocks held by hedge funds. The insurance stocks have done better in 2025 despite the losses from wildfires earlier this year. The industry-leading ETFs, SPDR S&P Insurance ETF and iShares US Insurance ETF, have surged nearly 6% and 8.60% year-to-date, respectively. At the same time, the S&P 500 index, which tracks large-cap stocks, has plunged over 8%. READ ALSO: 10 Most Undervalued Insurance Stocks to Buy Now Investors are holding back as the market feels uneasy due to the tariff policies. The Trump Administration has addressed to the market that it plans to reposition the U.S. economy as a leader. The government has imposed heavy tariffs to drive companies to invest in the domestic market. The U.S. Treasury Secretary Scott Bessent acknowledged that these policies may create short-term disruption, even if they turn out to be effective eventually. Apart from the market-changing conditions in the U.S., there are geopolitical conflicts in Europe and the Middle East. Once again, the economic data is warning of a potential recession, and U.S. consumers are financially quitting. The changing economic landspace in the U.S. could have significant implications for insurers, leading to potential supply chain changes and shifts in overall profitability. According to the Underwriting Director at Lloyd's Market Association, Elizabeth Wooliston, the effects of tariffs on insurers will differ as increased uncertainty and market volatility could raise business risks. 'There is no doubt we are living in unpredictable times, and even looking at a 12-month insurance contract could feel as if we are trying to predict a long way ahead,' Wooliston added. She further said, 'In the U.S., as the end price of goods is likely to rise, the most obvious and immediate concern for insurers will be managing their 'value at risk', with brokers paying close attention to avoid underinsureance for their customers.' Apart from underwriting for profitability, insurers also rely on investing their capital in various financial instruments. If market uncertainty increases in the long term, it can hurt the overall profitability of insurers. However, analysts at Keefe, Bruyette & Woods believe that insurers should be able to overcome the tariff challenges. Industry players will potentially have enough time to request rate increases, which state regulators are likely to approve. The analysts expect the tariffs to mainly impact personal insurance, along with auto damage, commercial property, surety, and marine lines. These segments will potentially be hit harder by tariffs due to increased claim costs. Despite the current market circumstances and losses from wildfire, the insurance industry in the U.S. remains steady. The U.S. has some of the largest insurance companies that drive the overall market. An insurance agent at their desk consulting a customer about property & casualty insurance. We used a Finviz screener to shortlist insurance companies with a market capitalization of more than $1 billion. We then looked for the insurance stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey's database, updated as of Q4 2024. Finally, the 10 best insurance stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). No. of Hedge Fund Holders: 100 The Progressive Corporation (NYSE:PGR) is an insurance holding company that offers different insurance products. It operates through various subsidiaries and affiliates, serving in three main segments, including Personal Lines, Commercial Lines, and Property. On March 20, Meyer Shields from Keefe, Bruyette & Woods increased the price target for PGR from $294 to $300 per share, reiterating an Outperform rating on the shares. The analyst says that PGR's earnings outperformance compared to their estimates for February led to an increased price outlook. Shields has also raised EPS estimates for 2025 and 2026 to $15.60 and $14.40, up from previous estimates of $15.55 and $14.35. The upgrade in earnings estimate for 2025 is mainly attributed to better-than-expected reserve releases. Overall, PGR ranks second among the 10 best insurance stocks to buy now. While we acknowledge the potential of insurance companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PGR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
Willis Towers Watson Public Limited Company (NASDAQ:WTW): Among the Best Insurance Stocks to Buy According to Hedge Funds
We recently published a list of the 10 Best Insurance Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Willis Towers Watson Public Limited Company (NASDAQ:WTW) stands against the other insurance stocks held by hedge funds. The insurance stocks have done better in 2025 despite the losses from wildfires earlier this year. The industry-leading ETFs, SPDR S&P Insurance ETF and iShares US Insurance ETF, have surged nearly 6% and 8.60% year-to-date, respectively. At the same time, the S&P 500 index, which tracks large-cap stocks, has plunged over 8%. Read More: 10 Most Undervalued Insurance Stocks to Buy Now Investors are holding back as the market feels uneasy due to the tariff policies. The Trump Administration has addressed to the market that it plans to reposition the U.S. economy as a leader. The government has imposed heavy tariffs to drive companies to invest in the domestic market. The U.S. Treasury Secretary Scott Bessent acknowledged that these policies may create short-term disruption, even if they turn out to be effective eventually. Apart from the market-changing conditions in the U.S., there are geopolitical conflicts in Europe and the Middle East. Once again, the economic data is warning of a potential recession, and U.S. consumers are financially quitting. The changing economic landspace in the U.S. could have significant implications for insurers, leading to potential supply chain changes and shifts in overall profitability. According to the Underwriting Director at Lloyd's Market Association, Elizabeth Wooliston, the effects of tariffs on insurers will differ as increased uncertainty and market volatility could raise business risks. 'There is no doubt we are living in unpredictable times, and even looking at a 12-month insurance contract could feel as if we are trying to predict a long way ahead,' Wooliston added. She further said, 'In the U.S., as the end price of goods is likely to rise, the most obvious and immediate concern for insurers will be managing their 'value at risk', with brokers paying close attention to avoid underinsureance for their customers.' Apart from underwriting for profitability, insurers also rely on investing their capital in various financial instruments. If market uncertainty increases in the long term, it can hurt the overall profitability of insurers. However, analysts at Keefe, Bruyette & Woods believe that insurers should be able to overcome the tariff challenges. Industry players will potentially have enough time to request rate increases, which state regulators are likely to approve. The analysts expect the tariffs to mainly impact personal insurance, along with auto damage, commercial property, surety, and marine lines. These segments will potentially be hit harder by tariffs due to increased claim costs. Despite the current market circumstances and losses from wildfire, the insurance industry in the U.S. remains steady. The U.S. has some of the largest insurance companies that drive the overall market. An experienced underwriter discussing complex insurance cases with a client in a modern office setting. Our Methodology We used a Finviz screener to shortlist insurance companies with a market capitalization of more than $1 billion. We then looked for the insurance stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey's database, updated as of Q4 2024. Finally, the 10 best insurance stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). No. of Hedge Fund Holders: 48 Willis Towers Watson Public Limited Company (NASDAQ:WTW) is an insurance company that provides commercial insurance, brokerage services, and strategic risk investment solutions. WTW recently announced its AdWrap program, a master-controlled insurance program that offers the production insurance needs of businesses and their contracted vendors. This program supports businesses to have a cost-effective and transparent approach to growing their businesses. On March 18, UBS analyst Brian Meredith upgraded the rating on WTW from Neutral to Buy, increasing the price target from $344 to $395 per share. The analyst expects WTW to improve its operating and FCF margins, exceeding its peers in the insurance brokerage industry. Meredith expects WTW to sustain an organic revenue growth of almost 5.9% in 2025, compared to a consensus estimate of 5.2%. Willis Towers Watson Public Limited Company (NASDAQ:WTW) posted mixed results in 2024. The revenue came in at $9.93 billion for the full year of 2024, growing by 5% year-over-year. The sale of TRANZACT is expected to improve growth rates, operating margins, and FCF in 2025. The analysts expect the company to achieve a 1.4% year-over-year increase in EPS in 2025. Overall, WTW ranks 10th among the 10 best insurance stocks to buy now. While we acknowledge the potential of insurance companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WTW but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
09-04-2025
- Business
- Yahoo
Aon plc (NYSE:AON): Among the Best Insurance Stocks to Buy According to Hedge Funds
We recently published a list of the 10 Best Insurance Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Aon plc (NYSE:AON) stands against the other insurance stocks held by hedge funds. The insurance stocks have done better in 2025 despite the losses from wildfires earlier this year. The industry-leading ETFs, SPDR S&P Insurance ETF and iShares US Insurance ETF, have surged nearly 6% and 8.60% year-to-date, respectively. At the same time, the S&P 500 index, which tracks large-cap stocks, has plunged over 8%. Read More: 10 Most Undervalued Insurance Stocks to Buy Now Investors are holding back as the market feels uneasy due to the tariff policies. The Trump Administration has addressed to the market that it plans to reposition the U.S. economy as a leader. The government has imposed heavy tariffs to drive companies to invest in the domestic market. The U.S. Treasury Secretary Scott Bessent acknowledged that these policies may create short-term disruption, even if they turn out to be effective eventually. Apart from the market-changing conditions in the U.S., there are geopolitical conflicts in Europe and the Middle East. Once again, the economic data is warning of a potential recession, and U.S. consumers are financially quitting. The changing economic landspace in the U.S. could have significant implications for insurers, leading to potential supply chain changes and shifts in overall profitability. According to the Underwriting Director at Lloyd's Market Association, Elizabeth Wooliston, the effects of tariffs on insurers will differ as increased uncertainty and market volatility could raise business risks. 'There is no doubt we are living in unpredictable times, and even looking at a 12-month insurance contract could feel as if we are trying to predict a long way ahead,' Wooliston added. She further said, 'In the U.S., as the end price of goods is likely to rise, the most obvious and immediate concern for insurers will be managing their 'value at risk', with brokers paying close attention to avoid underinsureance for their customers.' Apart from underwriting for profitability, insurers also rely on investing their capital in various financial instruments. If market uncertainty increases in the long term, it can hurt the overall profitability of insurers. However, analysts at Keefe, Bruyette & Woods believe that insurers should be able to overcome the tariff challenges. Industry players will potentially have enough time to request rate increases, which state regulators are likely to approve. The analysts expect the tariffs to mainly impact personal insurance, along with auto damage, commercial property, surety, and marine lines. These segments will potentially be hit harder by tariffs due to increased claim costs. Despite the current market circumstances and losses from wildfire, the insurance industry in the U.S. remains steady. The U.S. has some of the largest insurance companies that drive the overall market. A portfolio manager studying various stocks and other securities on a tablet. Our Methodology We used a Finviz screener to shortlist insurance companies with a market capitalization of more than $1 billion. We then looked for the insurance stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey's database, updated as of Q4 2024. Finally, the 10 best insurance stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). No. of Hedge Fund Holders: 59 Aon plc (NYSE:AON) is a London-based professional services firm. It specializes in risk management, human capital consulting, and insurance brokerage. The company operates in more than 120 countries. Its services include Commercial Risk Solutions, Health Solutions, Reinsurance Solutions, and Wealth Solutions. Aon plc (NYSE:AON) demonstrated strong performance in 2024. The company posted a revenue growth of 17% to $16 billion from a year ago. A 6% revenue growth was driven organically. Aon executed the first year of its 3 by 3 plan, which focuses on Risk Capital and Human Capital, Aon client leadership, and Aon Business Services. The company posted earnings of $15.60 per share, recording a 10% increase in adjusted earnings. In 2024, Aon generated around $2.8 billion in FCF and returned over $1.6 billion to shareholders. This reflects its ability to generate capital and return it to the shareholders. Diamond Hill Large Cap Concentrated Fund stated the following regarding Aon plc (NYSE:AON) in its Q4 2024 investor letter: 'As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we've thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated just three new positions in Q4: Berkshire Hathaway, Aon plc (NYSE:AON) and Waste Management.' Overall, AON ranks 6th among the 10 best insurance stocks to buy now. While we acknowledge the potential of insurance companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AON but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
The Allstate Corporation (NYSE:ALL): One of the Best Insurance Stocks to Buy According to Hedge Funds
We recently published a list of the 10 Best Insurance Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where The Allstate Corporation (NYSE:ALL) stands against the other insurance stocks held by hedge funds. The insurance stocks have done better in 2025 despite the losses from wildfires earlier this year. The industry-leading ETFs, SPDR S&P Insurance ETF and iShares US Insurance ETF, have surged nearly 6% and 8.60% year-to-date, respectively. At the same time, the S&P 500 index, which tracks large-cap stocks, has plunged over 8%. Read More: 10 Most Undervalued Insurance Stocks to Buy Now Investors are holding back as the market feels uneasy due to the tariff policies. The Trump Administration has addressed to the market that it plans to reposition the U.S. economy as a leader. The government has imposed heavy tariffs to drive companies to invest in the domestic market. The U.S. Treasury Secretary Scott Bessent acknowledged that these policies may create short-term disruption, even if they turn out to be effective eventually. Apart from the market-changing conditions in the U.S., there are geopolitical conflicts in Europe and the Middle East. Once again, the economic data is warning of a potential recession, and U.S. consumers are financially quitting. The changing economic landspace in the U.S. could have significant implications for insurers, leading to potential supply chain changes and shifts in overall profitability. According to the Underwriting Director at Lloyd's Market Association, Elizabeth Wooliston, the effects of tariffs on insurers will differ as increased uncertainty and market volatility could raise business risks. 'There is no doubt we are living in unpredictable times, and even looking at a 12-month insurance contract could feel as if we are trying to predict a long way ahead,' Wooliston added. She further said, 'In the U.S., as the end price of goods is likely to rise, the most obvious and immediate concern for insurers will be managing their 'value at risk', with brokers paying close attention to avoid underinsureance for their customers.' Apart from underwriting for profitability, insurers also rely on investing their capital in various financial instruments. If market uncertainty increases in the long term, it can hurt the overall profitability of insurers. However, analysts at Keefe, Bruyette & Woods believe that insurers should be able to overcome the tariff challenges. Industry players will potentially have enough time to request rate increases, which state regulators are likely to approve. The analysts expect the tariffs to mainly impact personal insurance, along with auto damage, commercial property, surety, and marine lines. These segments will potentially be hit harder by tariffs due to increased claim costs. Despite the current market circumstances and losses from wildfire, the insurance industry in the U.S. remains steady. The U.S. has some of the largest insurance companies that drive the overall market. A suburban home with people walking in front, representing the protection provided by the Property & Casualty Insurance. Our Methodology We used a Finviz screener to shortlist insurance companies with a market capitalization of more than $1 billion. We then looked for the insurance stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey's database, updated as of Q4 2024. Finally, the 10 best insurance stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). No. of Hedge Fund Holders: 71 The Allstate Corporation (NYSE:ALL) provides a wide range of insurance services and products, including property and casualty, health, and protection products. Its offerings include auto, home, life, and supplemental insurance. The company also provides analytics solutions, roadside assistance, and consumer protection plans. The Allstate Corporation (NYSE:ALL) has closed the divestiture of its Employer Voluntary Benefits business. Sold to StanCorp Financial Group, Allstate received nearly $2 billion from the sale of its business unit. This sale has ended in a pre-tax book gain of almost $625 million, while the funds will improve the company's approach to capital management. It will also support Allstate's $1.5 billion share repurchase program, which will run through September 2026. Wall Street analysts expect ALL to post earnings per share of $3.68 for Q1 2025. The revenue estimates are around $16.50 billion, with rate hikes supporting the revenue. Paul Newsome from Piper Sandler recently reiterated an Overweight rating on ALL, maintaining a price target of $248. Newsome expects the company to achieve positive auto policy-in-force (PIF) growth in 2025. Diamond Hill Large Cap Concentrated Strategy stated the following regarding The Allstate Corporation (NYSE:ALL) in its Q2 2024 investor letter: 'Among our bottom Q2 contributors were Abbott Laboratories, ConocoPhillips, and The Allstate Corporation (NYSE:ALL). Allstate, one of the US's largest auto and homeowners' insurance providers has seen the pace of premium price increases decelerate, weighing on investor sentiment around the stock. However, the company's underlying fundamentals are intact, margin expansion should continue through the year, and the outlook remains constructive.' Overall, ALL ranks 4th among the 10 best insurance stocks to buy now. While we acknowledge the potential of insurance companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ALL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
