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This week, Allied World Assurance Company Holdings (NYSE:AWH) announced that it is buying Transatlantic Holdings (NYSE:TRH). This deal is the only recent multi-billion dollar insurance M&A activity, and may be the start of what many have predicted to be a wave of consolidation amongst insurers and also possibly other financials.

Here, I have screened the market for American life insurers. Amongst them, I searched for those with trailing earnings and that are trading below book value while having a current price to free cash flow (FCF) under 10.
Ticker
Name
Market Cap
P/E
P/B
P/FCF
Genworth Financial Inc.
$50.72 B
114.89
0.36
3.29
Lincoln National Corp.
$8.62 B
10.04
0.66
5.94
MetLife, Inc.
$43.63 B
13.67
0.88
6.28
Protective Life Corp.
$2.11 B
7.67
0.57
3.97
Prudential Financial, Inc.
$29.45 B
10.44
0.9
3.57
Reinsurance Group of America Inc.
$3.76 B
12.93
0.89
4.79
Book value and free cash flow are two popular metrics amongst value investors, and also important metrics to insurers. These metrics can sometimes look deceptively undervalued when a company is under significant risk, but also where a company’s underlying assets are overvalued.
Disclaimer: This article is intended to be news and informative press, and should not be construed as personalized advice as it does not take into account your specific situation or objectives.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Source: 6 U.S. Insurers With Strong Free Cash Flow, Trading Below Book Value