Top 5 Popular Life Insurance Stocks To Watch In Canada: Aflac, Lincoln National, MetLife, Primerica, and Globe Life offer strong investment opportunities with steady growth potential.
If you want to increase your wealth, investing in life insurance stocks can be a savvy strategy. Life insurance providers sell policies designed to safeguard loved ones and build savings. These are a few of the more popular life-insurance-related securities available that may be worth further consideration.
How to Invest in Life Insurance Stocks
Investing in life insurance stocks is easy to do. Just follow these steps:
Choose an Online Stock Trading Platform: Look for a platform that allows you to buy and sell stocks.
Sign Up for an Account: Enter your personal information to create an account.
Set Up a Funding Method: Connect your bank account so that you can deposit money into your trading account.
Find the Stocks You Want to Buy: You can search for the stock by name or ticker symbol (like AFL or LNC).
Place Your Order: Buy the stock. Done!
Top 5 Popular Life Insurance Stocks to Watch in Canada
- Aflac Incorporated (AFL)
Aflac is our best life insurance stock because of its demonstrated long-term operational success, good profitability prospects and conservative investment mix.
Aflac is a pretty well-known company that sells supplemental health and life insurance products. They have two primary business segments: (1) Aflac Japan, and (2) Aflac U.S.
Previous Close Price: $97.17
Market Cap: $55,576,977,408
1Y Performance: 27.97%
P/E Ratio: 10.4573
- Lincoln National Corporation (LNC)
Life Insurance products include term insurance, such as group term life insurance coverage provided to employees of Lincoln’s employer customers; debt-financed and employer-sponsored whole life insurance; and indexed universal life insurance. Annuities products comprise fixed (including indexed) and variable annuities. It also provides group disability, reinsurance, and long-term care insurance policies. The company sells its products through consultants, brokers, planners, administrators, agents, third-party administrators, and other intermediaries.
Previous Close Price: $29.13
Market Capitalization: $5,789,419,520
1-Year Performance: 5.07%
P/E Ratio: 4.6138
I have been doing my due diligence among other things and I did come up with a few companies in the insurance business that offer solid value. 3 of these companies trade at P/E ratios below what I consider to be a market average coupled with excellent balance sheets. I am comfortable owning these names.
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- MetLife (MET)
MetLife is in the international space with a global presence in multiple businesses which include insurance, annuities, employee benefits and asset management. Asia, Latin America and Europe are its regions where business is conducted.
Previous Close Price: $67.42
Market Capitalization: $53,333,962,752
1-Year Performance: 6.49%
P/E Ratio: 20.5924
- Primerica (PRI)
Primerica provides financial products and services to middle-income households in the United States and Canada. It operates through four segments: Term Life Insurance; Investment and Savings Products; Senior Health, including Medicare supplement insurance, Medicare Advantage insurance, policy underwriting, and other health-related deposit funds; and Corporate and Other Distributed Products.
Previous Close Price: $239.71
Market Capitalization: $8,502,319,104
1-Year Performance: 11.18%
P/E Ratio: 15.0567
- Globe Life (GL)
Globe Life is a provider of individual life and supplemental health insurance products, and annuities to lower middle to middle income households in the United States.
Previous Close Price: $88.63
Market Capitalization: $8,388,238,336
Trailing Performance 1-Year : -21.95%
Price Earnings Ratio: 8.2197
Here are some more life-insurance stocks for you to consider:
Brighthouse Financial (BHF)
Brighthouse Financial, Inc. provides annuity and life insurance products in the United States. It operates through three segments: Annuities, Life, and Run-off. The Annuities segment offers variable, fixed, index-linked, and income annuities for contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security; and optional policy riders for these contract holders.
Previous Close Price: $43.45
Market Capitalization: $2,852,150,784
1-Year Performance: -16.57%
Atlantic American Corporation (AAME)
Atlantic American Corporation, through its subsidiaries, provides life and health, and property and casualty insurance products in the United States. It operates through American Southern and Bankers Fidelity segments.
Previous Close Price: $1.56
Market Capitalization: $31,211,694
1-Year Performance: -16.01%
Independence Holding Company (IHC)
Independence Holding Company (IHC) is a life and health insurance company. It actually has a great long-term record based on an initial investment close to where it trades today. There’s a decent chance this will be our only annual meeting with the management of an insurance carrier.
IHC is under followed but that does not make it cheap, at least on the surface. The market cap for IHC is $391 million though entering into revenue run rate terms, we can add back dividends to working capital (since NWC doesn’t grow in practice) and then put an 8x multiple on incremental underwriting profit ($30-90 million per year “forever”) which would bring us to about 18% return from IHC’s mark-to-market price.
As always there are issues that could materialize or disqualify this one in due course but they are very low probability in my view relative to other stocks of similar size/reduced upside opportunity.
Independence Holding Company provides health, pet and life insurance products. The company also offers dental, vision, short-term medical, group and individual disability (limited benefit), group and individual gap medical and accident indemnity insurance products; hospital indemnity, fixed indemnity, critical illness, cancer treatment benefit, life insurance coverage with an accidental death benefit, disability income and companion limited medical insured indemnity plans; liability insurance for accidental injuries or damages suffered by patients in connection with their use of prescription drugs; medical stop-loss insurance; administrative services only or including point of service prepayment access contracts for a discount dental or vision program to the uninsured employer groups; non-cancelable supplemental lump sum accident products; and specialty markets oriented short-term medical.
Previous Close Price: $0.131
Market Capitalization: $841,467,584
1-Year Performance: N/A
P/E Ratio: 7.988
Why Invest in Life Insurance Stocks?
Investing in life insurance stocks can make for a solid investment thesis for a number of reasons.
Stable Industry: Insurance industry is generally a stable sector and the returns in this sector are usually constant. Long Term Growth: Such companies tend to grow over time as more and more people buy insurance and make investments for their own future.
Tone: It’s all in the tone – I make sure mine is just right.
When you invest in life insurance stocks, make sure to research the company’s financial health, market performance, and future growth potential. It’s also wise to diversify your investments.
Investing in life insurance stocks can be an effective way to grow your money, but be sure to do so responsibly and avoid investing all of your money into one stock. I wish you the best with your investments!