Top 10 Specialty Insurance Stocks by Marvin Score
Marvin's rules ranked 10 specialty insurance stocks by Overall score within their industry. First American Financial leads, followed by Investors Title and Enact Holdings. The scores describe today's standing against industry peers, not future results.
Specialty insurers cover risks that fall outside ordinary home, car or life policies. Their results can look quite different from one another, so comparing them only against each other is more useful than comparing them with the whole market. This list covers 10 companies in Marvin's Insurance - Specialty industry.
The order follows each company's Overall score, with the highest first. Beside it you can see revenue growth, operating margin, return on equity and debt where those figures exist. Strong margins and modest debt usually point to a sturdier business, while shrinking revenue or thin profits call for a closer look.
Keep in mind that a high score is not a recommendation or a forecast. Some figures are missing for certain companies, and each blurb notes where that limits the picture.
The list
How Marvin ranked these stocks
Marvin included only companies above a minimum size, then ranked them by Overall score, highest first, within the Insurance - Specialty industry. Every score is relative to that company's own industry, so a high score means a company compares well with other specialty insurers today. It does not mean the company beats businesses in other industries.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Insurance - Specialty industry, highest Overall score first.
The stocks, one by one
First American Financial Corporation FAF
First American Financial has the top Overall score of 93, helped by revenue growth of 21.6% last fiscal year and a return on equity of 13.3%. Its operating margin of 8.3% is far thinner than several rivals' on this list, which is the main caution.
Investors Title Company ITIC
Investors Title Company scores 86 overall, with revenue growth of 5.6% and return on equity of 14.1%. That suggests steady, moderate expansion and decent profit on shareholder money. Operating margin and debt figures are unavailable, so profitability and leverage are only partly visible.
Enact Holdings Inc. ACT
Enact Holdings pairs a quality score of 86 with a very high operating margin of 69.1% and a low debt-to-equity ratio of 0.14, pointing to strong profitability and light borrowing. Growth was slow at 2.8%, and return on equity is not available.
NMI Holdings, Inc. NMIH
NMI Holdings has the highest quality score on the list at 93, backed by an operating margin of 69.3% and return on equity of 14.6%. Revenue growth was a moderate 8.5%. Its opportunity score of 64 is lower, and no debt figure is available.
MGIC Investment Corporation MTG
MGIC Investment shows a very high operating margin of 74.0% and return on equity of 14.1%, signs of a highly profitable operation. The caution is growth: revenue rose just 0.5% last fiscal year, close to flat. Its Overall score is 65, and no debt figure is available.
Fidelity National Financial, Inc. FNF
Fidelity National Financial has an Overall score of 58, with an operating margin of 11.3% and return on equity of 10.4%, both fairly modest. Its debt-to-equity ratio of 0.64 is higher than Enact's or Radian's, which is worth noting for a reader weighing balance-sheet strength.
Radian Group Inc. RDN
Radian Group has a healthy operating margin of 44.0% and a modest debt-to-equity ratio of 0.26. The weak spot is growth: revenue slipped -0.8% last fiscal year. Its quality score is 44, which keeps its Overall score at 51, around the middle of the group.
AMERISAFE, Inc. AMSF
AMERISAFE has the best return on equity here at 18.8%, with an operating margin of 17.5%. Those are solid profit measures. The caution is its low opportunity score of 29, which holds the Overall score to 43. No debt figure is available.
Tiptree Inc. TIPT
Tiptree has a high opportunity score of 86 but a low quality score of 21. Revenue fell -67.9% last fiscal year and operating margin was -42436.7%, a very large loss relative to revenue. Return on equity was 8.6%, so treat this one with extra care.
Employers Holdings, Inc. EIG
Employers Holdings has the lowest Overall score here at 29. Return on equity is only 0.9% and revenue slipped -2.5% last fiscal year, both weak. Debt is low, with a debt-to-equity ratio of 0.15, but no operating margin figure is available.
Common questions
What is specialty insurance?
Specialty insurance generally covers risks that fall outside standard home, car or life policies, often for narrower or less common needs. Marvin groups companies like these in one industry so they can be compared with each other.
Does a high Marvin score mean a stock is a good buy?
No. Marvin's scores only show how a company compares with other companies in its industry today. They are not advice or a prediction, and they say nothing about future price moves. Use them as a starting point for your own research.
Why does Tiptree have a high opportunity score but a low Overall score?
Tiptree's opportunity score is 86, but its quality score is only 21, and its Overall score is 36. Marvin's Overall score looks at more than opportunity alone, so weak quality and results pull it down.
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.