Assurant, Inc. (AIZ): This Insurer Is Cheap According to Benjamin Graham

Though Assurant, Inc. (NYSE:AIZ) is the cheapest on the list, some of the other companies could also be an option with plenty of room to grow. Unum Group, the largest provider of disability insurance in the United States and United Kingdom, currently trades at a 23% discount to its book value and boasts a dividend yield above 2%. Triple-S Management is the leading provider in the managed care industry in Puerto Rico, providing a great moat for the company. Nevertheless, the company currently trades at a 32% discount to its book value, also making it an attractive option in light of its stellar Graham valuation.

Accountability time
A stock’s valuation, regardless of the method used, only tells part of the story when evaluating a company. However, by going beyond its Graham number valuation, it is easy to see why Assurant, Inc. (NYSE:AIZ) might appear so “cheap” at its current price. Though the company has plenty of room to grow into its Graham valuation, investors should keep an eye on the force-placed insurance business to make sure those issues are behind them. Nevertheless, I will be giving the stock a “thumbs up” over on my CAPS page in order to track this call and keep myself accountable.

The article This Insurer Is Cheap According to Benjamin Graham originally appeared on Fool.com and is written by Robert Eberhard.

Fool contributor Robert Eberhard has no position in any stocks mentioned. The Motley Fool recommends American International Group. The Motley Fool owns shares of American International Group, Citigroup, and JPMorgan Chase. and has the following options: Long Jan 2014 $25 Calls on American International Group.

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