Pages

Wednesday, July 25, 2007

Highest Yielding Life Insurance Companies: The Forgotten Financials

There has been a lot of negative news affecting the banks, mortgage companies and, to a lesser extent, investment brokerage firms, such as the sub-prime debacle, increasing foreclosures, rising interest rates, and a glut of real estate inventory. However, in the financial services industry, there has been a group that is somewhat overlooked, the life insurance companies. There will obviously be some exposure to the sub-prime problems, but not to the extent of the banks and mortgage companies. Fortunately, there are about ten life insurance companies that pay dividends of more than 1%. The following are the top ten by yield sorted by highest to lowest.

Prudential plc (PUK), which trades on the New York Stock Exchange, is the London based insurance and financial services company, not to be confused with the American based Prudential Financial Inc. (PRU). Prudential plc is primarily involved in the business of life insurance, pensions, and annuities, but they also provide mortgage banking services. The stock has a P/E of 39, a PS of 0.97, and a yield of 3.1%.

Presidential Life (PLFE), which trades on NASDAQ, is a Nyack, New York based firm which provides various types of insurance products including graded benefit life insurance, universal life, whole life, term life, single premium annuities, single premium deferred annuities, single premium immediate products, flexible premium annuities and group terminal funding annuities. The stock has a P/E of 9.95 and a yield of 2.9%.

Sun Life Financial (SLF), which trades on the New York Stock Exchange, is a Canadian based life and health insurance company which also provides savings, retirement, and pension products. The stock has a P/E of 14.35, a price earnings to growth ratio of 1.29, and a yield of 2.4%.

Lincoln National (LNC) is another NYSE traded life insurance company which provides a yield of 2.4%. The stock has a P/E of 12.18 and a PEG of 1.13.

Manulife Financial Corp. (MFC), a life insurance firm which trades on the NYSE. The stock is generating a yield of 2.1%. The P/E on the stock is 15.62 and has a PEG of 1.25.

Protective Life (PL) trades on the NYSE and produces a yield of 2%. The P/E ratio for this life insurer is 10.6 and the PEG is 1.26.

American National Insurance (ANAT) is a NASDAQ traded insurance company which has a yield of 1.9%. The P/E on their stock is 14.99.

Nationwide Financial Services (NFS) is a provider of various type of annuity products along with life insurance. This NYSE traded company has a P/E of 11.5, a PEG of 1.37 and a yield of 1.7%.

FBL Financial (FFG) offers life insurance, annuities, and property and casualty insurance products. Their P/E is 13.09, the PEG is 1.3, and the yield is 1.3%.

Genworth Financial (GNW) provides life, health, and long term care insurance products along with investment products. The stock has a P/E of 11.28, a PEG of 0.93, and a yield of 1.1%.

By Fred Fuld at Stockerblog.com

No comments:

Post a Comment