The SPDR S&P Insurance ETF (KIE) attempts to correspond to the total return performance of an index that tracks the performance of publicly traded companies in the insurance industry.
Its year-to-date performance is up 15% and shares of KIE were trading at around $43.20 as of Monday. That's down a little from the 52-week high of $45.20. It yields around 1.7% and has a three-year average return of a little more than 7%.
KIE sports an average PE of around 9, which also happens to be the forward (one-year) PE for ALL. TRV's forward PE is around 10. According to Arends' article, "Allstate shares...trades at roughly the net per-share value of the company's assets, and for about 63% of annual per-share revenue. The median for the past 15 years...
Jim Cramer and Stephanie Link actively manage a real money portfolio for his charitable trust- enjoy advance notice of every trade, full access to the portfolio, and deep coverage of the latest economic events and market movements.
The part of the insurance business that caught my eye and that benefits from the potential of rising insurance rates going forward is the major insurance brokers. The Journal article pointed out the industry is a "global oligopoly, controlled by a handful of companies..."
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