3 Stocks Pushing The Insurance Industry Lower

The Insurance industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.2%. Laggards within the Insurance industry included National Security Group ( NSEC), down 1.5%, Unico American ( UNAM), down 4.9%, 1347 Property Insurance Holdings ( PIH), down 3.9%, Independence ( IHC), down 2.3% and Investors Title ( ITIC), down 2.9%.

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

Enstar Group ( ESGR) is one of the companies that pushed the Insurance industry lower today. Enstar Group was down $5.24 (3.2%) to $156.60 on heavy volume. Throughout the day, 148,640 shares of Enstar Group exchanged hands as compared to its average daily volume of 32,700 shares. The stock ranged in price between $155.00-$161.30 after having opened the day at $157.49 as compared to the previous trading day's close of $161.84.

Enstar Group Limited acquires and manages insurance and reinsurance companies in run-off and portfolios of insurance and reinsurance business in run-off. It operates in four segments: Non-Life Run-Off, Atrium, Torus, and Life and Annuities. Enstar Group has a market cap of $2.6 billion and is part of the financial sector. Shares are up 5.8% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Enstar Group a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Enstar Group as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on ESGR go as follows:

  • ESGR's very impressive revenue growth greatly exceeded the industry average of 12.7%. Since the same quarter one year prior, revenues leaped by 125.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ESGR's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
  • 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 51.6% when compared to the same quarter one year prior, rising from $29.59 million to $44.85 million.
  • 35.50% is the gross profit margin for ENSTAR GROUP LTD which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, ESGR's net profit margin of 15.60% compares favorably to the industry average.

You can view the full analysis from the report here: Enstar Group Ratings Report

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At the close, Investors Title ( ITIC) was down $2.03 (2.9%) to $69.00 on light volume. Throughout the day, 100 shares of Investors Title exchanged hands as compared to its average daily volume of 2,000 shares. The stock ranged in price between $69.00-$69.00 after having opened the day at $69.00 as compared to the previous trading day's close of $71.03.

Investors Title Company, through its subsidiaries, provides title insurance to residential, institutional, commercial, and industrial properties. Investors Title has a market cap of $140.0 million and is part of the financial sector. Shares are down 2.6% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Investors Title as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, increase in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on ITIC go as follows:

  • The revenue growth came in higher than the industry average of 12.7%. Since the same quarter one year prior, revenues slightly increased by 6.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ITIC 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.
  • 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 22.2% when compared to the same quarter one year prior, going from $3.37 million to $4.12 million.
  • INVESTORS TITLE CO has improved earnings per share by 24.2% in the most recent quarter compared to 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, INVESTORS TITLE CO reported lower earnings of $4.74 versus $7.08 in the prior year.

You can view the full analysis from the report here: Investors Title Ratings Report

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Independence ( IHC) was another company that pushed the Insurance industry lower today. Independence was down $0.31 (2.3%) to $13.11 on light volume. Throughout the day, 3,400 shares of Independence exchanged hands as compared to its average daily volume of 10,400 shares. The stock ranged in price between $13.06-$13.33 after having opened the day at $13.33 as compared to the previous trading day's close of $13.42.

Independence Holding Company provides life and health insurance products in the United States, the District of Columbia, the Virgin Islands, and Puerto Rico. Independence has a market cap of $234.6 million and is part of the financial sector. Shares are down 3.8% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Independence as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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Highlights from TheStreet Ratings analysis on IHC 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 30.8% when compared to the same quarter one year prior, rising from $3.85 million to $5.03 million.
  • IHC's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • 39.29% is the gross profit margin for INDEPENDENCE HOLDING CO which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 3.78% trails the industry average.
  • INDEPENDENCE HOLDING CO has improved earnings per share by 31.8% 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 year. During the past fiscal year, INDEPENDENCE HOLDING CO increased its bottom line by earning $0.93 versus $0.78 in the prior year.

You can view the full analysis from the report here: Independence Ratings Report

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