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The insurance sector is heating up due to a new takeover deal. Tokio Marine of Japan, just agreed to buy Delphi Financial Group, Inc. (NYSE:DFG) for about $2.7 billion. Read more on the deal here. The buyout announcement caused Delphi shares to surge about 73% higher in a single day. Just think about those gains, 73% in a single day! That's about 10 years worth of interest if you are invested in junk bonds and more than a lifetime of interest income in many investments. This kind of gain shows why it can pay off to stay somewhat exposed to stocks. This deal also shows that insurance stocks are extremely undervalued. This sector is worth buying now due to low valuations that should rise substantially over time, as well as the prospects of another takeover deal in this sector. Many of these stocks could double in price if they just traded around book value. Compared to banks and other financial stocks, these insurance companies offer some of the best values for investors. These stocks are relatively low-risk due to stable cash flows from policy payments. Almost all have high book values relative to their stock price, low PE ratios, strong balance sheets, and in some cases, dividends that are likely to rise in the future. Here are the stocks to consider for a potential double:

Hartford Financial (NYSE:HIG) is trading at $16.26. Hartford is one of the leading insurance companies in the United States. These shares have traded in a range between $14.56 to $31.08 over the past 52 weeks. The 50-day moving average is $17.52 and the 200-day moving average is $21.75. HIG earnings estimates are about $1.84 per share in 2011, and $3.36. This puts the PE ratio at about 5, which is very reasonable. The dividend is about 40 cents per year, which results in a yield of about 2.7%. The book value is $49.89 per share. HIG shares could triple and would still be trading below book value.

Lincoln National Corp. (NYSE:LNC) shares trade at $18.70 per share. Lincoln is a major life insurance and financial services company, based in Pennsylvania. These shares have traded in a range between $13.75 to $32.68 over the past 52 weeks. The 50-day moving average is $19.10 and the 200-day moving average is $23.82. LNC earnings estimates are about $4.16 per share in 2011, and $3.93 for 2012. This puts the PE ratio around 5. The dividend is 32 cents per year, which results in a yield of about 1.8%. The book value is $49.46 per share. LNC could double in price and it still would be trading below book value.

MetLife, Inc. (NYSE:MET) shares trade at $30.41 per share. MetLife is a major life insurance company, based in New York. These shares have traded in a range between $25.61 to $48.72 over the past 52 weeks. The 50-day moving average is $31.66 and the 200-day moving average is $36.83. MET earnings estimates are about $4.91 per share in 2011, and $5.05 for 2012. This puts the PE ratio around 6. The dividend is 74 cents per year, which results in a yield of about 2.5%. The book value is $57.06 per share. MET shares could double and would still be trading near book value.

Prudential Financial, Inc. (NYSE:PRU) shares trade at $49.33 per share. Prudential is a major life insurance company, based in New Jersey. These shares have traded in a range between $42.45 to $67.52 over the past 52 weeks. The 50-day moving average is $50 and the 200-day moving average is $54.92. PRU earnings estimates are about $6.22 per share in 2011, and $6.96 in 2012. This puts the PE ratio around 8. The dividend is $1.45 per year, which results in a yield of about 3.1%. The book value is $78.39 per share. PRU shares could double and would still be trading just slightly over book value.

Protective Life (NYSE:PL) shares trade at $21.82 per share. Protective Life is a major life insurance company, based in Alabama. These shares have traded in a range between $13.71 to $29.54 over the past 52 weeks. The 50-day moving average is $20.16 and the 200-day moving average is $21.27. PL earnings estimates are about $3.47 per share in 2011, and $3.41 for 2012. This puts the PE ratio around 6. The dividend is 64 cents per year, which results in a yield of about 3.1%. The book value is $49.29 per share. PL shares could double and would still be trading at a discount to book value.

Torchmark Corp. (NYSE:TMK) shares trade at $42.61 per share. Torchmark is a major life and supplemental health insurance company, based in Texas. These shares have traded in a range between $32.77 to $45.37 over the past 52 weeks. The 50-day moving average is $41.19 and the 200-day moving average is $40.80. TMK earnings estimates are about $4.67 per share in 2011, and $5.25 in 2012. This puts the PE ratio around 9. The dividend is 48 cents per year, which results in a yield of about 1.2%. The book value is $40.94 per share. This stock is not trading at a discount to book value but it still appears undervalued.

CNO Financial Group, Inc. (NYSE:CNO) shares trade at $6.26 per share. CNO is a major accident and health insurance company, based in Indiana. These shares have traded in a range between $4.73 to $8.34 over the past 52 weeks. The 50-day moving average is $6.06 and the 200-day moving average is $6.74. CNO earnings estimates are about 73 cents per share in 2011, and 70 cents for 2012. This puts the PE ratio around 9. While this stock has upside, it's not my top insurance pick for value because the PE ratio is higher than most of the companies here, and it pays no dividend. The book value is $20.34 per share. CNO shares could triple before coming close to book value.

The data is sourced from Yahoo Finance. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.

Source: 7 Low-Risk Stocks That Are Poised To Double

Additional disclosure: I might buy all of these stocks soon.