Both banking stocks and insurance stocks have done exceptionally well since they literally crashed in 2009. Not only were those sectors hit hardest, they were also suffering from continuously falling interest rates. As interest rates seem to have reached a rock solid bottom, both in the U.S. and recently also in Europe, banking and insurance stocks are showing strength. We have identified 4 top insurance stocks, and we are sure they are worth considering in 2018.
The insurance business can be considered a boring sub-sector of the financial industry as it is bound to predictably measured growth. However, sadly for end users like ourselves, the cost of premiums will only go up. Recent research shows that the average annual health premium cost is approximately $19,000 for a family and $6,600 for an individual in 2017.
Insurance companies are great in seizing the “what if” psychology into their business model. That is meant to charge premiums which are used (at least, to a certain extent) to make investments.
But the combination of increasing premiums and rising rates offers an opportunity not often seen in the insurance business, hence also an opportunity in insurance stocks especially in 2018.
As can be seen from my recent articles on the bullishness of Broker-Dealer Stocks as well as Banking Stocks as specific subsectors, InvestingHaven sees this momentum in insurance stocks too, and capitalizes on the initial move before these stocks speed off before our eyes.
Insurance stock #1: AEGON N.V.
Aegon N.V. (NYSE:AEG) is a multinational life insurance, pensions and asset management company headquartered in The Hague, Netherlands. It is also listed in NYSE as an ADR stock. The monthly chart of Aegon shown below has an interesting multi decade downtrend since the stock topped in December 1988. For the last 29 years or so, price has been moving in a rock solid downtrend which was finally broken in November 2017. Our first price target for 2018 is between 9-10, and any price beyond it will be an exceptional bonus. The flipside is a break below 5.5, that would negate the upside projection.
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