Investors may want to consider the insurance sector for the year 2021. The US housing market is experiencing a resurgence, and homebuilding stocks have gained tremendously during the last few months. Housing sales have been robust in recent times, and the interest rates have been at historic lows. At the same time, there is uncertainty surrounding specific segments of the commercial real estate industry. So, if you are looking for top insurance company stocks to buy, then you may want to look at Fidelity National Financial. It is one of the leading title insurance companies in the US and could be an excellent way to bet on the resurgence in the real estate industry. Fidelity National Financial is estimated to enjoy a 33% market share in the US title insurance market, as per a study conducted by the American Land Title Association.
The Financials Of Fidelity National Financial
Fidelity National Financial earned revenues of $10.77 billion in the year 2020. Out of this amount, a significant chunk ($9.3 billion) was attributed to the title segment. The F&G segment accounted for $1.23 billion while the corporate and other segment was responsible for a mere $171 million. It is safe to say that the title premium income is the key driver of Fidelity National Financial’s business. Revenues have grown from $.76 billion in 2018 to $10.77 billion in a 3-year timeframe. Diluted earnings per share have also risen significantly from $2.26 per share in 2018 to $4.99 per share in 2020. Dividend payments have grown from $0.48 in 2011 to $1.44 in 2020. The yield is above the 3% mark, which has been the case during 3 of the last ten years. Fidelity National Financial is among the best insurance stock today.
Fidelity National Financial’s stock closed at $44.72 on 19th April 2021. The stock has seen up and down cycles over the past five years. The price was around $23 five years ago, and it has doubled since then. However, the price has also fallen to $20 and $30 levels in the interim period.