8 Undervalued Insurance Stocks To Invest In

5. Prudential Financial Inc. (NYSE:PRU)

Forward P/E: 8.40

Earnings Growth: 14.80%

Number of Hedge Fund Holders: 40

Prudential Financial Inc. (NYSE:PRU) is an American insurance company that has operations in the United States, Asia, Europe and Latin America. The company offers a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, and investment management.

One of Prudential’s (NYSE:PRU) key growth areas is its focus on retirement products, driven by the aging population. In the Q2 2024 earnings call, the company’s management noted that a record number of Americans will turn 65 this year, creating a significant demand for retirement solutions. This demographic shift is expected to result in a $137 trillion retirement market opportunity in the US by 2050.

The company’s Retirement Strategies segment is delivering attractive products and solutions. As a result, Prudential Financial Inc. (NYSE:PRU) is well-positioned to capitalize on this trend. The company reported nearly $22 billion in sales in Retirement Strategies in the first half of 2024, a remarkable 67% increase from the previous year.

The company also saw strong performance in its annuity sales, particularly with its FlexGuard Indexed Variable Annuity product suite, which has helped generate over $21 billion in sales since its launch in 2020. In Japan, Prudential Financial Inc. (NYSE:PRU) has expanded its product offerings, resulting in a 20% increase in retirement and savings product sales year-over-year.

For Q2 2024, Prudential Financial Inc. (NYSE:PRU) reported net income of $1.198 billion, or $3.28 per share, compared to $511 million or $1.38 per share in the same quarter last year. The Retirement Strategies segment achieved an adjusted operating income of $1.036 billion, up from $876 million in Q2 2023.

Prudential Financial Inc. (NYSE:PRU) is also focused on using technology to improve customer experience and expand its market reach, making it a forward-thinking player in the insurance industry. On October 21, 2024, Prudential (NYSE:PRU) announced a strategic partnership with 123Seguro to enhance its digital insurance offerings in Latin America. This collaboration aims to distribute accident & health, life and ancillary products to customers in Brazil and Mexico through a user-friendly digital platform.

PRU is one of the best insurance stocks to buy. With its strong financial results, innovative strategies for retirement solutions, and expanding global presence, Prudential Financial Inc. (NYSE:PRU) presents a compelling investment opportunity for those looking to invest in the insurance sector.

As of the second quarter of 2024, PRU was held by 40 hedge funds, according to Insider Monkey’s database. Prudential Financial Inc. (NYSE:PRU) ranks among the top 5 on our list of undervalued insurance stocks to invest in.