U.S. Insurance Industry Analysis
UpdatedJul 27, 2024
DataAggregated Company Financials
Companies124
- 7D2.5%
- 3M9.1%
- 1Y29.9%
- YTD18.6%
Over the last 7 days, the Insurance industry has risen 2.5%, driven by gains from Aon of 9.1%. This takes the industry's 12 month performance to a gain of 30%. Earnings are forecast to grow by 8.2% annually.
Industry Valuation and Performance
Has the U.S. Insurance Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 27 Jul 2024 | US$1.2t | US$830.1b | US$81.5b | 13.4x | 14.8x | 1.5x |
| Mon, 24 Jun 2024 | US$1.2t | US$823.4b | US$79.2b | 13.1x | 15x | 1.4x |
| Wed, 22 May 2024 | US$1.2t | US$823.1b | US$79.1b | 12.5x | 15x | 1.4x |
| Fri, 19 Apr 2024 | US$1.1t | US$797.7b | US$69.1b | 14.1x | 16.5x | 1.4x |
| Sun, 17 Mar 2024 | US$1.2t | US$792.7b | US$67.0b | 14.4x | 17.6x | 1.5x |
| Tue, 13 Feb 2024 | US$1.1t | US$784.4b | US$61.3b | 12.3x | 18.1x | 1.4x |
| Thu, 11 Jan 2024 | US$1.1t | US$790.2b | US$48.8b | 12.9x | 22.7x | 1.4x |
| Sat, 09 Dec 2023 | US$1.1t | US$792.9b | US$47.7b | 13.5x | 22.9x | 1.4x |
| Mon, 06 Nov 2023 | US$1.1t | US$790.3b | US$46.8b | 12.8x | 22.7x | 1.3x |
| Wed, 04 Oct 2023 | US$1.0t | US$799.1b | US$38.9b | 14.4x | 26.3x | 1.3x |
| Fri, 01 Sep 2023 | US$1.0t | US$799.3b | US$38.7b | 15x | 26.4x | 1.3x |
| Sun, 30 Jul 2023 | US$1.0t | US$791.2b | US$41.3b | 15.6x | 24.7x | 1.3x |
| Tue, 27 Jun 2023 | US$964.6b | US$774.5b | US$35.1b | 14.9x | 27.4x | 1.2x |
| Thu, 25 May 2023 | US$946.0b | US$774.0b | US$35.6b | 15.4x | 26.6x | 1.2x |
| Sat, 22 Apr 2023 | US$979.2b | US$760.4b | US$43.9b | 15.7x | 22.3x | 1.3x |
| Mon, 20 Mar 2023 | US$905.4b | US$759.4b | US$44.2b | 14.5x | 20.5x | 1.2x |
| Wed, 15 Feb 2023 | US$1.0t | US$767.9b | US$47.4b | 15.9x | 21.9x | 1.4x |
| Fri, 13 Jan 2023 | US$1.0t | US$777.9b | US$54.7b | 15x | 19x | 1.3x |
| Sun, 11 Dec 2022 | US$1.0t | US$777.8b | US$54.7b | 14.7x | 18.5x | 1.3x |
| Tue, 08 Nov 2022 | US$995.2b | US$774.8b | US$54.6b | 15.7x | 18.2x | 1.3x |
| Thu, 06 Oct 2022 | US$936.6b | US$767.1b | US$63.3b | 14x | 14.8x | 1.2x |
| Sat, 03 Sep 2022 | US$931.3b | US$767.2b | US$63.2b | 13.3x | 14.7x | 1.2x |
| Mon, 01 Aug 2022 | US$892.7b | US$768.7b | US$70.2b | 11.9x | 12.7x | 1.2x |
| Wed, 29 Jun 2022 | US$964.9b | US$787.8b | US$79.3b | 11.9x | 12.2x | 1.2x |
| Fri, 27 May 2022 | US$1.0t | US$787.9b | US$79.3b | 11.1x | 12.9x | 1.3x |
| Sun, 24 Apr 2022 | US$1.1t | US$788.7b | US$86.3b | 10.8x | 12.6x | 1.4x |
| Tue, 22 Mar 2022 | US$1.1t | US$817.5b | US$90.8b | 10.9x | 12.2x | 1.4x |
| Thu, 17 Feb 2022 | US$1.1t | US$799.9b | US$88.1b | 10.9x | 12.4x | 1.4x |
| Sat, 15 Jan 2022 | US$1.1t | US$801.6b | US$88.3b | 11.4x | 12.5x | 1.4x |
| Mon, 13 Dec 2021 | US$1.1t | US$801.0b | US$88.3b | 10.6x | 12.1x | 1.3x |
| Wed, 10 Nov 2021 | US$1.1t | US$798.1b | US$90.2b | 10.8x | 12x | 1.4x |
| Fri, 08 Oct 2021 | US$1.0t | US$771.4b | US$90.5b | 9.8x | 11.5x | 1.3x |
| Sun, 05 Sep 2021 | US$1.0t | US$771.8b | US$90.4b | 10x | 11.4x | 1.3x |
| Tue, 03 Aug 2021 | US$992.1b | US$771.8b | US$90.4b | 9.8x | 11x | 1.3x |
Price to Earnings Ratio
11x
Current Industry PE
- Investors are pessimistic on the American Insurance industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 14.8x which is lower than its 3-year average PE of 17.7x.
- The industry is trading close to its 3-year average PS ratio of 1.3x.
Past Earnings Growth
- The earnings for companies in the Insurance industry have declined 3.4% per year over the last three years.
- Meanwhile revenues for these companies have grown 2.5% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the U.S. Financials industry?
| US Market | -0.64% | |
| Financials | 1.33% | |
| Insurance | 2.48% | |
| General Insurance | 3.66% | |
| Insurance Brokers | 3.54% | |
| Property and Casualty Insurance | 2.56% | |
| Reinsurance | 2.01% | |
| Life and Health Insurance | 1.00% | |
Industry PE
- Investors are most optimistic about the Insurance Brokers industry, which is trading close to its 3-year average PE ratio of 34.7x.
- Analysts expect its future annual earnings growth (16.2%) to be largely in line with prior year's earnings growth.
- Investors are most pessimistic about the Reinsurance industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Insurance Brokers industry, expecting annual earnings growth of 16% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the General Insurance industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| AON Aon | US$323.00 | 9.1% +US$5.8b | 1.0% | PE27.2x | |
| AJG Arthur J. Gallagher | US$283.58 | 4.9% +US$2.9b | 31.2% | PE54.3x | |
| TRV Travelers Companies | US$213.85 | 5.1% +US$2.4b | 23.4% | PE13.3x | |
| ERIE Erie Indemnity | US$421.38 | 11.7% +US$2.3b | 92.5% | PE45.5x | |
| HIG Hartford Financial Services Group | US$109.63 | 8.4% +US$2.2b | 51.8% | PE11.1x |