Financial stocks like banks tend to look up when interest rates are rising, and they look bearish when interest rates fall. The current environment isn’t very clear. Interest rates rose for a few months in the latter part of 2020 and the beginning of 2021. However, they do not seem to be following any particular direction decisively as of July 2021. So, instead of looking at traditional finance stocks, one can consider businesses like Alleghany Corporation that operate in the insurance industry. Alleghany specializes in casualty and property insurance and also has investments in other businesses in multiple sectors. Some investors compare Alleghany to Berkshire Hathaway due to its insurance plus investment business model. Alleghany has delivered a decent performance financially and could be among the best finance stocks now.
Alleghany Announced Q12021 Earnings Numbers
On 6th May 2021, Alleghany Corporation announced its first-quarter 2021 earnings numbers. Total revenue was up significantly from $1.48 billion in Q12020 to $2.65 billion, a 79% change year-on-year. A large part of this revenue increase was attributed to Alleghany Capital’s performance. Alleghany Capital is the subsidiary that handles the investment portfolio. Adjusted earnings per diluted share almost doubled from $4.99 in Q12020 to $9.81, a jump of 96% year-on-year. Net insurance premiums written in the reinsurance segment grew 15.2% year-on-year, while the net insurance premiums written in the insurance segment grew 11.5% year-on-year. Alleghany Corporation could be among the top-performing options for an investor looking to buy financial stock.
Alleghany Corporation is based in New York City. Its stock faced resistance at the $660 zone. However, since breaking out of that resistance, the $660 level is now acting as a support. Prices have been moving sideways in a tight range of $660 and $680 since the end of June 2021.