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Financials Sector Report

Insurance Industry Report

Market Cap: $3.0T
Stocks: 132
Median P/E: 9.6x
Median ROIC: 9.8%

Data sourced from SEC EDGAR filings. Report refreshed weekly.

Part of the Financials sector.

Performance Dashboard

PeriodSector (MCW)Sector (Median)
1 Day+0.1%0.0%
1 Week-1.0%+0.0%
1 Month
3 Months
6 Months
YTD+0.9%+0.2%
1 Year-8.1%+0.9%
3 Years+48.8%+36.6%
5 Years+73.9%+30.1%

Today's Breadth: 59 advancing · 65 declining · 7 flat

Valuation Summary

MetricMedianP25P75vs 5Y Avg
P/E9.6x1.9x15.7x-15%
P/B1.3x0.4x2.1x+4%
P/S0.8x0.3x1.8x
P/FCF5.9x1.3x9.8x
EV/EBITDA7.7x4.4x12.8x
EV/EBIT8.6x5.2x13.6x
Earnings Yield
8.9%
FCF Yield
11.0%
Below Fair Value
39% of stocks

Profitability Profile

Margins

MetricMedian5Y AvgP25P75
Gross Margin16.0%15.3%10.0%37.2%
Operating Margin12.1%4.0%21.0%
Net Margin9.0%8.1%4.6%17.5%
FCF Margin15.0%4.4%23.2%

Returns on Capital

MetricMedian5Y AvgP25P75
ROE11.9%7.0%19.4%
ROA2.7%0.5%5.3%
ROIC9.8%8.9%5.9%16.6%

Growth Metrics

Metric1Y3Y CAGR5Y CAGR
Revenue+7.0%+9.2%+8.3%
EPS+26.1%+11.9%+14.8%
Free Cash Flow+7.2%+10.0%+6.4%

All values represent sector median growth rates.

Balance Sheet Health

Debt / Equity
0.3x
Net Debt / EBITDA
-1.1x
Interest Coverage
8.2x
Current Ratio
1.6x

Altman Z-Score

Safe (>3): 0 (0%)
Gray (1.8–3): 1 (17%)
Distress (<1.8): 5 (83%)

Piotroski F-Score

Strong (7–9): 18 (14%)
Moderate (4–6): 88 (67%)
Weak (0–3): 26 (20%)

Top Companies

Symbol#Mkt CapP/EEV/EBITDAROICNet MgnRev Gr.Div YldYTDQual.
BRK-B1$1.1T0.0x11.7x9.8%18.0%0.0%+0.1%5/9
UNH2$285.2B25.1x15.4x7.0%2.7%+11.8%2.6%+3.8%3/9
CB3$132.5B12.2x85.0x12.3%17.4%+6.5%1.2%+0.4%5/9
PGR4$117.4B11.1x8.4x40.5%12.9%+16.3%6.5%-0.7%5/9
CI5$73.9B12.5x8.2x8.4%2.2%+11.2%2.2%-0.9%3/9
ELV6$71.0B13.9x8.6x7.8%2.8%+12.5%1.9%+2.7%4/9
AON7$70.6B20.9x20.0x15.9%21.5%+9.4%0.8%+1.7%5/9
TRV8$69.1B10.7x8.3x20.7%12.9%+5.2%1.5%+1.4%5/9
AFL9$60.0B16.0x-0.8x10.2%21.2%-9.3%2.1%-0.1%3/9
AJG10$57.9B45.5x26.5x4.4%10.7%+20.7%1.0%+2.4%2/9
ALL11$57.4B5.5x4.2x30.1%15.0%+5.6%1.9%+1.1%4/9
MET12$50.8B16.9x6.2x7.4%4.1%+8.6%2.8%+0.7%3/9
AIG13$44.4B15.9x6.5x6.1%11.6%-1.8%2.0%+0.2%5/9
HIG14$39.8B10.4x7.7x17.3%13.4%+6.9%1.6%+0.7%5/9
ACGL15$36.5B8.3x0.5x17.3%21.9%+14.3%0.1%-0.8%5/9
AEFC16$35.7B10.8%+1.2%0/9
PRU17$35.3B11.3x7.2x7.3%5.9%-13.7%4.8%+2.3%2/9
WTW18$28.4B20.4x13.6x11.9%16.5%-2.2%1.1%-3.7%4/9
WRB19$26.8B15.8x11.2x17.7%12.1%+7.8%2.6%+0.2%5/9
CINF20$25.8B10.9x8.0x15.2%18.9%+11.4%2.1%+0.3%4/9

Industry Composition

IndustryStocksMarket Cap%
Fire, Marine & Casualty Insurance66$1.8T61.8%
Hospital & Medical Service Plans10$490.9B16.6%
Life Insurance25$276.1B9.3%
Insurance Agents, Brokers & Service17$223.8B7.6%
Accident & Health Insurance6$104.4B3.5%
Surety Insurance8$35.4B1.2%

Quality Distribution

0
1
2
3
4
5
6
7
8
9

Quality Score (0-9)

High Quality (7+)
2%
Median Piotroski F
5/9
Profitable Years
8 of 10

Dividends & Shareholder Returns

Paying Dividends
64%
Median Div Yield
2.2%
Median Buyback Yield
2.7%
Shareholder Yield
4.2%
Payout Ratio
28.7%
Div Growth (3Y)
7.4%
Div Growth (5Y)
7.6%

Strengths & Weaknesses

Strengths

  • +[Shareholder Returns]Generous capital returns with a median shareholder yield (dividends + buybacks) of 4.2%, rewarding investors through multiple channels.

Weaknesses

  • [Financial Health]83.3% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
  • [Profitability]Thin margins with a median gross margin of 16.0%, typical of commodity-like or price-competitive industries.
  • [Quality]Only 1.5% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.

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