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During the last global financial crisis, insurance companies have been affected in adverse ways like all other financial institutions. Most of the insurance companies had to reduce their dividends in 2009. Currently the trend reversed and revenues of insurance companies are increasing. For the first nine-months of 2010, the United States property/casualty insurance industry's net premiums were $327.4 billion, an increase of 6.1% compared with a year ago. The industry saw significant increases in net income which climbed 74% to $29.9 billion for the nine months ending in September 2010.

We prepared a list of 13 insurance companies which pay fat dividend checks regularly. All companies in this list have a dividend yield of at least 2%. These 13 stocks returned 12.12% (including dividends) during the past 12 months, beating the government bonds by a large margin.

1. Mercury General Corp. (NYSE:MCY): Mercury General Corporation provides private passenger and commercial automobile insurance services in the United States. MCY recently traded at $39.25 and has a 6.06% dividend yield. MCY lost 4.89% during the past 12 months. The stock has a market cap of $2.15 billion and P/E ratio of 14.12.

2. Cincinnati Financial Corp (NASDAQ:CINF): Cincinnati Financial operates in the property and casualty insurance sector. CINF recently traded at $32.97 and has a 4.84% dividend yield. CINF gained 20.24% during the past 12 months. The stock has a market cap of $5.37 billion and P/E ratio of 14.27.

3. Harleysville Group (NASDAQ:HGIC): Harleysville Group operates in the property and casualty insurance sector primarily in the United States. HGIC recently traded at $32.85 and has a 4.28% dividend yield. HGIC gained 5.66% during the past 12 months. The stock has a market cap of $890 million and P/E ratio of 13.57.

4. Donegal Group Inc. A (NASDAQ:DGICA): Donegal Group provides personal and commercial lines of property and casualty insurance products in the United States. DGICA recently traded at $12.87 and has a 3.57% dividend yield. DGICA lost 8.2% during the past 12 months. The stock has a market cap of $337.03 million and P/E ratio of 29.35.

5. Erie Indemnity Company (NASDAQ:ERIE): Erie provides auto, homeowners, life and business insurance services. ERIE recently traded at $70.72 and has a 2.76% dividend yield. ERIE gained 70.37% during the past 12 months. The stock has a market cap of $3.95 billion and P/E ratio of 24.81.

6. PartnerRe Limited (NYSE:PRE): PartnerRe Limited provides reinsurance solutions worldwide. PRE recently traded at $77.07 and has a 2.72% dividend yield. PRE lost 0.63% during the past 12 months. The stock has a market cap of $5.21 billion and P/E ratio of 7.37.

7. Axis Capital Holdings Ltd. (NYSE:AXS): AXIS Capital Holdings Limited provides various insurance and reinsurance products worldwide. AXS recently traded at $34.37 and has a 2.56% dividend yield. AXS gained 12.91% during the past 12 months. The stock has a market cap of $4.04 billion and P/E ratio of 5.71.

8. The Chubb Corporation (NYSE:CB): The Chubb Corporation provides property and casualty insurance services. CB recently traded at $60.96 and has a 2.46% dividend yield. CB gained 20.74% during the past 12 months. The stock has a market cap of $18 billion and P/E ratio of 9.02.

9. The Travelers Companies (NYSE:TRV): The Travelers Companies provides various commercial and personal property and casualty insurance products and services primarily in the United States. TRV recently traded at $59.39 and has a 2.42% dividend yield. TRV gained 13.17% during the past 12 months. The stock has a market cap of $25.6 billion and P/E ratio of 8.97. TRV is one of the top 25 positions of David Einhorn’s Greenlight Capital.

10. The Hanover Insurance Group (NYSE:THG): The Hanover Insurance Group provides personal and commercial property, and casualty insurance services in the United States. THG recently traded at $45.25 and has a 2.27% dividend yield. THG gained 6.12% during the past 12 months. The stock has a market cap of $2.05 billion and P/E ratio of 13.53.

11. AFLAC Incorporated (NYSE:AFL): AFLAC Incorporated provides supplemental health and life insurance services. AFL recently traded at $52.52 and has a 2.21% dividend yield. AFL lost 1.04% during the past 12 months. The stock has a market cap of $24.7 billion and P/E ratio of 10.61. Aflac is one of the insurance companies affected by the Japanese earthquake.

12. Alterra Capital Holdings Ltd. (NASDAQ:ALTE): Alterra Capital Holdings Limited, provides property and casualty insurance services. ALTE recently traded at $21.95 and has a 2.1% dividend yield. ALTE lost 2.36% during the past 12 months. The stock has a market cap of $2.31 billion and P/E ratio of 6.92.

13. ACE Limited (NYSE:ACE): ACE Limited provides insurance and reinsurance products worldwide. ACE recently traded at $64.17 and has a 2.06% dividend yield. ACE gained 25.48% during the past 12 months. The stock has a market cap of $21.53 billion and P/E ratio of 7.04.

Source: 13 Insurance Stocks for Dividend Lovers