As the economy bounces back from the pandemic-led economic downturn, property and casualty insurance stocks are in focus. Casualty insurance includes vehicle insurance, liability insurance, and coverage for employers and individuals against the loss of property, damage, injuries, and other liabilities. Property insurance includes homeowners insurance, flood insurance, earthquake insurance, renters insurance, etc. Property insurance is designed to provide protection against risks to property. Two companies that specialize in property and casualty insurance are Markel Corporation and Cincinnati Financial Corporation. W.R. Berkley Corporation is another insurance company that focuses on commercial lines property and casualty insurance. Markel Corporation is considered to be among the best insurance stocks 2020.
Performances Of The Best Insurance Stocks 2020
Cincinnati Financial Corporation stock was priced at &77.63 at the close of day on 23rd November 2020. The stock was up 1% for the past month, but down 26% since the start of the year 2020. The stock is up 27% on a 5-year basis. Cincinnati Financial Corporation’s stock also trades at a 3% dividend yield.
Markel Corporation’s stock closed at $998.89 on 23rd November 2020. The stock has been flat for the past month while it is down 13.5% on a year-to-date basis. Over the past 5 years, Markel Corporation’s stock has gained 8.5%.
W.R. Berkley Corp’s stock closed at $65.22 on 23rd November 2020. The stock trades at a small 0.74% dividend yield and has gained 2.2% for the past month. W.R. Berkley Corp’s stock is down 5.4% on a year-to-date basis while it has risen by 75% in the last 5 years.
Does Markel Corporation Stand Out?
Markel Corporation is more than just an insurance company. It also acts as an investment fund and has substantial investments in businesses like manufacturing, healthcare, and financial services. It earns considerable income from investments in these businesses and the structure of the company is similar to that of Berkshire Hathaway. Markel invests income from its insurance operations via Markel Ventures. The company’s capital allocation strategy is to make such investments rather than return the cash to shareholders.