3 Stocks Pushing The Insurance Industry Lower - TheStreet

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The Insurance industry as a whole closed the day down 0.3% versus the S&P 500, which was down 0.3%. Laggards within the Insurance industry included

Life Partners Holdings

(

LPHI

), down 2.0%,

Crawford & Company

(

CRD.A

), down 1.6%,

Crawford & Company

(

CRD.B

), down 2.6%,

Baldwin & Lyons

(

BWINB

), down 2.0% and

CNinsure

(

CISG

), down 8.2%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

CNinsure

(

CISG

) is one of the companies that pushed the Insurance industry lower today. CNinsure was down $0.49 (8.2%) to $5.50 on heavy volume. Throughout the day, 189,710 shares of CNinsure exchanged hands as compared to its average daily volume of 82,200 shares. The stock ranged in price between $5.47-$5.99 after having opened the day at $5.99 as compared to the previous trading day's close of $5.99.

CNinsure Inc., an independent insurance intermediary company, distributes insurance products in the People's Republic of China. The company operates in three segments: Property and Casualty, Life, and Claims Adjusting. CNinsure has a market cap of $308.1 million and is part of the financial sector. Shares are down 0.8% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates CNinsure a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates

CNinsure

as a

buy

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on CISG go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 158.3% when compared to the same quarter one year prior, rising from $3.45 million to $8.91 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 24.2%. Since the same quarter one year prior, revenues rose by 18.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CISG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 8.49, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Net operating cash flow has significantly increased by 60.91% to $13.50 million when compared to the same quarter last year. In addition, CNINSURE INC -ADS has also vastly surpassed the industry average cash flow growth rate of 4.06%.

You can view the full analysis from the report here:

CNinsure Ratings Report

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At the close,

Baldwin & Lyons

(

BWINB

) was down $0.51 (2.0%) to $24.70 on average volume. Throughout the day, 19,992 shares of Baldwin & Lyons exchanged hands as compared to its average daily volume of 17,900 shares. The stock ranged in price between $24.68-$25.28 after having opened the day at $25.14 as compared to the previous trading day's close of $25.21.

Baldwin & Lyons, Inc., together with its subsidiaries, is engaged in marketing and underwriting property and casualty insurance products primarily in the United States. The company operates through two segments, Property and Casualty Insurance, and Reinsurance. Baldwin & Lyons has a market cap of $312.3 million and is part of the financial sector. Shares are down 7.7% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

Baldwin & Lyons

as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on BWINB go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 90.3% when compared to the same quarter one year prior, rising from $4.91 million to $9.34 million.
  • BWINB's revenue growth trails the industry average of 24.2%. Since the same quarter one year prior, revenues slightly increased by 3.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BWINB's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Net operating cash flow has significantly increased by 408.52% to $4.45 million when compared to the same quarter last year. In addition, BALDWIN & LYONS has also vastly surpassed the industry average cash flow growth rate of 4.06%.
  • BALDWIN & LYONS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, BALDWIN & LYONS increased its bottom line by earning $2.45 versus $2.14 in the prior year. For the next year, the market is expecting a contraction of 38.8% in earnings ($1.50 versus $2.45).

You can view the full analysis from the report here:

Baldwin & Lyons Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Life Partners Holdings

(

LPHI

) was another company that pushed the Insurance industry lower today. Life Partners Holdings was down $0.04 (2.0%) to $2.00 on light volume. Throughout the day, 2,172 shares of Life Partners Holdings exchanged hands as compared to its average daily volume of 19,600 shares. The stock ranged in price between $1.95-$2.06 after having opened the day at $2.00 as compared to the previous trading day's close of $2.04.

Life Partners Holdings, Inc., through its subsidiary, Life Partners, Inc., operates in the secondary market for life insurance worldwide. It facilitates the sale of life settlements between sellers and purchasers, but does not take possession or control of the policies. Life Partners Holdings has a market cap of $37.5 million and is part of the financial sector. Shares are up 13.1% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates

Life Partners Holdings

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on LPHI go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Diversified Financial Services industry. The net income has significantly decreased by 203.4% when compared to the same quarter one year ago, falling from $1.68 million to -$1.74 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Diversified Financial Services industry and the overall market, LIFE PARTNERS HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The share price of LIFE PARTNERS HOLDINGS INC has not done very well: it is down 9.96% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • LIFE PARTNERS HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, LIFE PARTNERS HOLDINGS INC continued to lose money by earning -$0.13 versus -$0.16 in the prior year.
  • Net operating cash flow has significantly increased by 61.65% to -$1.10 million when compared to the same quarter last year. In addition, LIFE PARTNERS HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of 0.71%.

You can view the full analysis from the report here:

Life Partners Holdings Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.