Thursday, November 3, 2011

9 Insurance Stocks to Sell Now

Insurance stocks are tricky businesses. For a good insurance stock, you have to
find a company without exposure to the worst weather patterns such as hurricanes
and snowstorms, and you have to know just how well a company reinvests the
premiums from policyholders as a way to grow its funds base instead of just
sitting on the cash and waiting to pay for claims. Unfortunately, with a bleak
winter outlook and the prospect of a tumultuous market, it's nearly impossible
to depend on most insurers to avoid pricey claims or to grow their capital base
through wise investing. I watch more than 5,000 publicly traded companies with
my Portfolio Grader tool, ranking companies by a number of fundamental and
quantitative measures. This week Ive got 9 insurance stocks to sell. Here they
are, in alphabetical order. Each one of these stocks gets a "D" or "F"
according to my research, meaning it is a "sell" or "strong sell."
Allstate Corp. (NYSE: ALL ) is involved with personal property insurance,
casualty insurance, life insurance, retirement and investment products. Like
other insurance stocks, ALL stock has slipped 18% in the past 11 months.
American International Group Inc. (NYSE: AIG ) is an insurance company that
serves customers in more than 130 countries. Despite owning a global operation,
AIG stock is down 58% since the start of 2011. Assured Guaranty (NYSE: AGO ) is
based in Bermuda and provides credit protection products to the United States
and other finance markets. AGO stock has slipped nearly 30% year-to-date,
similar to many other big insurance companies. China Life Insurance (NYSE: LFC )
is involved with individual life insurance, group life insurance, casualty
insurance, financing insurance, childrens insurance, endowment insurance and
protection insurance, among others. LFC stock has dropped 31% year-to-date,
compared to a gain of 2% for the Dow Jones. Genworth Financial Inc. (NYSE: GNW )
provides insurance, wealth management, investment and financial solutions to
more than 15 million customers all over the world. A staggering decline of 53%
year-to-date ensures GNW a spot on this list. Old Republic International Corp.
(NYSE: ORI ) is involved with insurance underwriting. ORI stock has dropped 37%
since the start of 2011, while the Dow Jones has posted a gain of 2% in the same
time period despite its volatility. PartnerRe (NYSE: PRE ) is an international
reinsurance group. A 17% drop year-to-date has left shareholders dismayed over
their original purchase. Platinum Underwriters (NYSE: PTP ) is a provider of
property and marine, casualty and finite risk reinsurance coverages. Rounding
out the list, PTP stock is down 22% since the start of 2011. The Hanover
Insurance Group (NYSE: THG ) operates in three business segments: commercial
lines, personal lines and other property and casualty. During the past year, THG
stock has dipped 18%. Get more analysis of these picks and other publicly-traded
stocks with Louis Navellier's Portfolio Grader tool, a 100% free stock-rating
tool that measures both quantitative buying pressure and eight fundamental
factors.

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