The Travelers Companies, Inc. (TRV), The Chubb Corporation (CB): Watch These Stocks

Operating earnings per share for the first quarter of 2013 were up 8% from the same period last year. One item that draws attention is that the sales of variable annuities in the US are down 29%. There will be more similar stories as this type of insurance product is being “pulled from the shelves” and replaced with newer ones. With all of these key points, I think better opportunities for individual investment in insurers can be found elsewhere.

The fourth spot of the PowerShares KBW Insurance Portfolio goes to AFLAC Incorporated (NYSE:AFL). Needless to say, the duck we all see on television speaks for AFLAC Incorporated (NYSE:AFL). What is not well known is that AFLAC Incorporated (NYSE:AFL) has a strong presence in Japan. This places a higher emphasis on understanding and analyzing how well AFLAC Incorporated (NYSE:AFL)’s management handles the significant currency exposure.

First quarter 2013 earnings reported flat gross revenue, while net diluted earnings per share were $1.90 versus $1.68 from the same period last year. The price chart below shows a sideways trend in the recent four months, and it remains to be seen if a breakout to the upside will occur. This is another stock that seems to be on the fence and may be moving to the greener side. However, with all the concerns about exposure to Japan, I find it hard to give this a clear green light.

While each of the underlying stocks in the PowerShares KBW Insurance Portfolio may generate a variety of opinions, in this case the power of a concentrated index of 24 stocks may remove some of the stigmas attached to any one stock. In my opinion, this is new ETF was brought to the market at a very good time and will give the investor a focused holding in the insurance sector.

The article Exciting Investment Ideas in “Stodgy” Industries originally appeared on Fool.com.

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