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16-07-2025
- Business
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BHF Stock Trading at a Discount to Industry at 0.51X: Time to Buy?
Shares of Brighthouse Financial, Inc. BHF are trading at a discount compared to the Zacks Life Insurance industry. Its price-to-book value of 0.51X is lower than the industry average of 1.91X, the Finance sector's 4.28X and the Zacks S&P 500 Composite's 8.43X. The insurer has a market capitalization of $2.72 billion. The average volume of shares traded in the last three months was 0.8 million. Shares of other insurers, such asSun Life Financial SLF, Baldwin Insurance Group, Inc. BWIN andAIA Group Ltd AAGIY, are trading at a multiple higher than the industry average. Image Source: Zacks Investment Research Price Performance of BHF Shares of Brighthouse Financialhave lost 1.5% year to date, underperforming its industry,the Finance sector, and the Zacks S&P 500 Composite. Due to increasing expenses weighing on margin expansion and a high debt level, which leads to elevated leverage and lower interest coverage, Brighthouse Financial remains under pressure. Image Source: Zacks Investment Research Projections For BHF The Zacks Consensus Estimate for 2025 revenues is pegged at $8.8 billion, implying a year-over-year improvement of 1.1%. The consensus estimate for Brighthouse Financial's current-year earnings is pegged at $18.44 per share, down 6.3% from the year-ago reported figure. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 18.3% and 2.6%, respectively, from the corresponding 2025 estimates. Average Target Price for BHF Suggests Upside Based on short-term price targets offered by 10 analysts, the Zacks average price target is $59.60 per share. The average suggests a potential 21.3% upside from the last closing price. Image Source: Zacks Investment Research Mixed Analyst Sentiment on BHF The Zacks Consensus Estimate for 2025 earnings has moved down 0.2% in the past seven days, while the same for 2026 has moved up 0.5% in the same time frame. Image Source: Zacks Investment Research Brighthouse Financial's Return on Capital BHF's trailing 12-month return on equity is 25.6%, ahead of the industry average of 15.37%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders ' equity. Key Points to Note for BHF Brighthouse Financial is poised to capitalize on the expanding individual insurance market, driven by its broad portfolio of life and annuity products and solid market positioning. With a strategic focus on increasing life insurance sales, enhancing annuity solutions, and expanding its distribution reach, the company is working to solidify its status as a leading force in the industry. Brighthouse Financial continues to shift its business mix toward less capital-intensive offerings, aiming to build a more sustainable and diversified earnings profile. Its institutional spread margin business is expected to contribute meaningfully over time, while products like Brighthouse Shield Level Pay Plus are designed to address evolving needs in retirement planning. Brighthouse Financial's net investment income has shown consistent improvement in recent quarters. In first-quarter 2025, adjusted net investment income rose 2% year over year to $1.3 billion, supported by asset growth. The yield on adjusted net investment income has also trended upward, reaching 4.25% in the first quarter. Backed by a well-diversified, high-quality portfolio and a prudent investment approach, this metric is expected to strengthen further going forward. Headwinds for BHF Brighthouse Financial continues to face significant financial pressures despite its strong business fundamentals. Total expenses nearly quadrupled to $2.7 billion in the first quarter of 2025, with corporate expenses climbing 15.4% year over year to $239 million. This surge in costs, largely due to increased policyholder benefits and claims, resulted in a negative net margin of 11%, indicating a strain on profitability. On the balance sheet side, the company's long-term debt totaled $3.2 billion, resulting in a high debt-to-equity ratio of 59.5%, significantly above the industry average of 16.8%. Additionally, its return on invested capital was just 0.6%, slightly trailing the industry average of 0.7%, indicating inefficiencies in capital utilization that could impact future returns. Conclusion While Brighthouse Financial boasts a strong product portfolio and growing investment income, ongoing pressure from rising expenses, high leverage, and modest returns on capital tempers the outlook. Given the balanced mix of strengths and headwinds, it is therefore wise to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Sun Life Financial Inc. (SLF) : Free Stock Analysis Report Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report AIA (AAGIY) : Free Stock Analysis Report Baldwin Insurance Group, Inc. (BWIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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11-07-2025
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AIZ Stock Trading at a Discount to Industry at 1.85X: Time to Hold?
Assurant, Inc. AIZ shares are trading at a discount compared with the Zacks Multi-line Insurance industry. Its forward price-to-earnings multiple of 1.85X is lower than the industry average of 2.56X, the Finance sector's 4.22X and the Zacks S&P 500 Composite's 8.42X. The insurer has a Value Score of insurer has a market capitalization of $9.63 billion. The average volume of shares traded in the last three months was 0.5 million. Shares of Enact Holdings, Inc. ACT, MGIC Investment Corporation MTG and Radian Group Inc. RDN are also trading at a discount to the industry average. Image Source: Zacks Investment Research Shares of Assurant have gained 14% in the past year, outperforming its industry and the Zacks S&P 500 composite's growth of 6.4% and 11.8%, respectively. It, however, underperformed the Finance sector's return of 18.2%. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Assurant's 2025 revenues is pegged at $12.59 billion, implying a year-over-year improvement of 5.2%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 18.7% and 4.4%, respectively, from the corresponding 2024 estimates. Earnings have grown 16.6% in the past five years, better than the industry average of 10.2%. Two of the five analysts covering the stock have lowered estimates for 2025, while two analysts have raised the same for 2026 over the past 60 days. Thus, the Zacks Consensus Estimate for 2025 earnings has moved down 0.6% in the past 60 days, while the same for 2026 has moved up 0.9% in the same time frame. Return on equity in the trailing 12 months was 15.4%, better than the industry average of 14.8%. This highlights the company's efficiency in utilizing shareholders' funds. Also, the return on invested capital (ROIC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame, reflecting AIZ's efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 9.9%, better than the industry average of 2%. Assurant's focus on growing fee-based capital-light businesses, which account for 52% of segmental revenues, bodes well for growth. Management estimates that the contribution from the same will continue to grow in double digits over the long term. Within Connected Living, AIZ continues to support long-term growth through the development of innovative offerings for partners. U.S. Connected Living is poised for solid growth, particularly within the mobile protection business, riding on innovative offerings, customer experience expertise and improved relationships with mobile carriers and cable operators. Homeowners' top-line growth, more favorable loss experience from prior-period development on claims, growth in policies in-force and higher average premiums within lender-placed, as well as growth across various specialty products, should drive better results at Global Housing. For 2025, AIZ expects Global Housing adjusted EBITDA, excluding reportable catastrophes, to Lifestyle growth is expected to be driven by Connected Living from growth in global mobile device protection and a new financial services program, inorganic and organic growth strategies. For 2025, Assurant expects adjusted EBITDA in this segment to increase from growth in Connected Living and Global Automotive. The insurer remains focused on ramping up the Connected Living platform, deploying innovative products and services, and adding new partnerships. These initiatives are expected to double the margins of Connected Living to 8% over the long term. Assurant has a solid capital management policy. It expects to deploy capital to fund investments, mergers and acquisitions. In November 2024, the board approved a dividend hike of 11%, which is the 20th consecutive year of increase. In the first quarter of 2025, Assurant repurchased shares for $62 million. As of now, $287 million remains under the current repurchase authorization. From a share repurchase perspective, Assurant's expected range for 2025 is between $200 million and $300 million, subject to M&A as well as market and other conditions. For the remainder of 2025, AIZ continues to expect share repurchases will remain more balanced due to the ability of its businesses to generate significant cash flow. The ultimate level of repurchases will depend on M&A opportunities and other market conditions. Focus on capital-light businesses, Homeowners growth, and Connected Living growth within the mobile protection business should favor Assurant's results. Higher return on capital, as well as favorable growth estimates and attractive valuations, should continue to benefit the insurer over the long term. Assurant also has an impressive dividend history, reflecting capital strength, that are expected to be attractive to generate long-term value for shareholders. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 MGIC Investment Corporation (MTG) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Radian Group Inc. (RDN) : Free Stock Analysis Report Enact Holdings, Inc. (ACT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
11-07-2025
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MKL Stock Trading at a Discount to Industry at 1.53X: Time to Hold?
Markel Group Inc. MKL shares are trading at a discount compared with the Zacks Diversified Operations industry. Its price-to-book ratio of 1.53X is lower than the industry average of 7.08X, the Finance sector's 7.08X and the Zacks S&P 500 Composite's 8.42X. The stock has a Value Score of has a market capitalization of $25.29 billion. The average volume of shares traded in the last three months was 0.05 million. Markel Group's bottom line surpassed earnings in three of the last four quarters and missed in one, the average being 11.26%. Image Source: Zacks Investment Research Shares of Markel Group have surged 26.7% in the past year, outperforming its industry, and the Finance sector and the Zacks S&P 500 composite's growth of 6.1%, 18.2% and 11.8%, Group has outperformed its peers, ITT Inc. ITT and Honeywell International Inc. HON, which have risen 19.1% and 10.2%, respectively, in the past year. Meanwhile, shares of Carlisle Companies Incorporated CSL have lost 2.4% in the past year. Image Source: Zacks Investment Research Shares of Markel Group are trading above the 50-day and 200-day simple moving averages (SMAs) of $1,927.94 and $21,788.82, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data. Its share price as of July 10, 2025, was $1,994.16, down 3.3% from its 52-week high of $2,063.68. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Markel Group's 2025 earnings per share indicates a year-over-year increase of 18.1%. The consensus estimate for revenues is pegged at $15.21 billion, implying a year-over-year improvement of 2.6%. The consensus estimate for 2026 earnings per share and revenues implies an increase of 11.5% and 6.3%, respectively, from the corresponding 2025 have grown 23.1% in the past five years, better than the industry average of 15.6%. One of the four analysts covering the stock hasve raised estimates for 2025, while one of the five analysts has lowered the same for 2026 over the past 30 days. Thus, the Zacks Consensus Estimate for 2025 and 2026 earnings has moved up 0.5% and 0.4%, respectively, in the past 30 days. Image Source: Zacks Investment Research Return on equity in the trailing 12 months was 7.48%, underperforming the industry average of 36.59%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders' funds. Thus, MKL's ROE is lagging the industry average. MKL has been generating improved premiums. An improvement in new business volume, strong retention levels, continued increases in rates and expanded product offerings should help the insurer retain the income should continue to benefit from an improving rate environment, higher interest income on cash equivalents, fixed maturity securities and short-term investments due to higher Group considers strategic buyouts a prudent approach to ramp up its growth profile. Acquisitions have helped the company enhance its surety capabilities, ramp up Markel Ventures' revenues and expand its reinsurance product offerings. The insurer has been pursuing acquisitions to achieve profitable growth in insurance operations and create additional value on a diversified basis in Markel Ventures' revenues at construction services and transportation-related businesses due to a combination of increased demand, higher prices and growth, as well as a rise in production at one of the equipment manufacturing businesses, are expected to boost operating revenues. The increase also reflected a full-year contribution from Metromont. Banking on a strong capital position, the company engages in share buybacks, a prudent way to distribute wealth to its shareholders. MKL has a share repurchase program, authorized by the board, that provides for the repurchase of up to $2 billion of shares. Also, given its solid cash position of $4.2 billion, the company should not face any difficulty in meeting short-term obligations. Given the company's strong stock performance, solid retention levels, an improving rate environment, favorable growth estimates and solid capital position, current shareholders may find it wise to hold onto MKL shares. Markel Group's new business volume and prudent capital deployment present significant growth opportunities. MKL also has a VGM Score of A. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with Markel Group's unfavorable return on capital and the mixed analyst sentiments surrounding the company, it is better to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Honeywell International Inc. (HON) : Free Stock Analysis Report ITT Inc. (ITT) : Free Stock Analysis Report Carlisle Companies Incorporated (CSL) : Free Stock Analysis Report Markel Group Inc. (MKL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
03-07-2025
- Business
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Radian Hits 52-Week High: Time to Add the Stock for Better Returns?
Shares of Radian Group Inc. RDN closed at $36.32 on July 2, near its 52-week high of $37.86. This proximity underscores investor confidence. It has the ingredients for further price appreciation. The stock is trading above the 50-day and 200-day simple moving averages (SMA) of $33.94 and $33.48, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price a capitalization of $4.87 billion, the average number of shares traded in the last three months was 1.4 million. Image Source: Zacks Investment Research Shares of Radian Group have gained 14.5% year to date, outperforming its industry and the Finance sector and the Zacks S&P 500 composite's growth of 7.7% 8.9% and 4.8%, respectively. Image Source: Zacks Investment Research RDN has outperformed its peers, Old Republic International Corporation ORI, which has gained 3.7% year to date, while MetLife, Inc. MET and Assurant, Inc. AIZ have lost 2.1% and 10%, respectively. Radian Group shares are trading at a forward price-to-book value of 1.12X, lower than the industry average of 2.73X, the Finance sector's 4.27X and the Zacks S&P 500 Composite's 8.33X. Its pricing, at a discount to the industry average, gives a better entry point to investors. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Radian Group's 2025 revenues is pegged at $1.26 billion, implying a year-over-year improvement of 0.9%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 3% and 3.2%, respectively, from the corresponding 2025 Group has a solid surprise history. The multi-line insurer has a solid track record of beating earnings estimates in each of the last four quarters, the average being 12.45%. One of the two analysts covering the stock has raised estimates for 2025 and 2026 over the past 60 days. Thus, the Zacks Consensus Estimate for 2025 and 2026 moved 1.06% and 1.3% north, respectively, in the last 60 days. Based on short-term price targets offered by six analysts, the Zacks average price target is $36.83 per share. The average suggests a potential 0.74% upside from the last closing price. Image Source: Zacks Investment Research Radian Group's heightened focus on the core business and services with higher growth potential ensures a predictable and recurring fee-based revenue business, combined with increasing annual persistency, should drive continued growth of the insurance-in-force portfolio. Radian Group's mortgage insurance portfolio creates a strong foundation for future earnings. RDN has been witnessing a declining pattern of claim filings. We expect paid claims to decline further, thus strengthening the balance sheet and improving its financial mortgage insurer has been strengthening its capital position with capital contributions, reinsurance transactions and cash position. This helps Radian Group engage in wealth distribution via dividend hikes and share buybacks. Based on recent industry forecasts, Radian Group expects the private mortgage insurance market in 2025 to be approximately $300 billion, in line with recent years. Improving mortgage insurance portfolio, declining claims, a solid capital position and effective capital deployment should continue to favor mortgage insurers over the long term. The 4.1% increase in quarterly dividend in the first quarter of 2025 marks the sixth consecutive year. RDN has increased the quarterly dividend, which has more than doubled over the past five years. Its current dividend yield of 2.8% betters the industry average of 2.5%, making it an attractive pick for yield-seeking solid growth projections as well as attractive valuations are other positives. Coupled with optimistic analyst sentiment and favorable ROIC, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today's Zacks #1 Rank stocks here. 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 MetLife, Inc. (MET) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Radian Group Inc. (RDN) : Free Stock Analysis Report Old Republic International Corporation (ORI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
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01-07-2025
- Business
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Can Lemonade's Reinsurance Renewal Boost Financial Flexibility?
Lemonade Inc. LMND, known for its AI-led insurance model, has announced the renewal of its reinsurance program. This strategic step supports the company's continued growth and stability across the United States and Europe, where it offers renters, homeowners, car, pet, and life insurance through a fully digital, paperless experience. While the reinsurance supports Lemonade in maintaining capital efficiency, stabilizing earnings, and scaling its insurance offerings, it has decided to lower its quota share reinsurance ceded to third parties. Starting July 1, the insurer plans to decrease its quota share reinsurance ceded to third parties from roughly 55% to 20%. This move underscores its growing diversification, enhanced underwriting discipline and continued improvement in loss ratio trends. With reinsurance carrying inherent costs, the company's steady advancements will likely enable it to retain more risk, strengthen its margins, and maintain a capital-light approach. The program covers all Lemonade businesses globally, and the primary quota share carriers will remain unchanged. The company also intends to renew its additional reinsurance arrangements, including Property Per Risk coverage, with terms anticipated to remain largely consistent with the existing agreements. The updated program will run for a standard 12-month period. Reducing dependence on reinsurance strengthens Lemonade financially by allowing it to retain more premiums, leading to increased revenue recognition and improved underwriting margins, provided claims remain stable. This shift may also raise unearned premium reserves on the balance sheet and enhance operating cash flow, ultimately supporting a more efficient capital structure and stronger financial position. Allstate Corporation ALL adjusted its reinsurance approach in 2025 to align with regional risk and capital efficiency. It reduced Florida catastrophe coverage while expanding nationwide reinsurance capacity to $9.5 billion via catastrophe bonds. This move by Allstate reflects a strategy to retain more risk, leveraging third-party capital to effectively protect against severe loss events. Travelers Companies Inc. TRV raised its catastrophe excess-of-loss retention to $4 billion in 2025, expanding coverage and relying entirely on private reinsurers. Travelers also increased Northeast XoL protection by $150 million, signaling a strategic shift toward higher risk retention supported by strong capital and catastrophe bonds. In the year-to-date period, Lemonade's shares have gained 19.5% outperforming the industry and the Zacks S&P 500 Composite. Image Source: Zacks Investment Research From a valuation standpoint, LMND has a price-to-book ratio of 5.8, higher than the industry average of 2.7. Lemonade carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Lemonade's 2025 earnings implies 1.4% growth year over year, followed by a 30.6% increase next year. Image Source: Zacks Investment Research The stock currently carries a Zacks Rank #3 (Hold).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
