Defense investments have been left in the dust by the high-flying semiconductor assembly, and a number of individual sectors are falling short of the market.
Despite the whiplash-inducing correction after the start of the Iran war, the S&P 500 is now up nearly 10% year-to-date (YTD). But the rally has been thin, and the market has become increasingly divided between stocks with AI connectivity and those without, putting the insurance sector in a precarious position. However, not all insurance stocks lag the market.
In fact, some are making new 52-week highs, in large part because they are avoiding a particular area of the market that is becoming more problematic: assets and losses.
A look at the insurance ETF pair shows how the market has turned. iShares US Insurance ETF NYSE: IAK down about 2% YTD, but the Invesco KBW Property and Casualty ETF NASDAQ: KBWP down more than 5% so far in 2026.
Commerce P&C prices are a major factor in the split. According to the Council of Insurance Agents and Brokers, P&C premiums fell by 1.2% in Q1 2026, marking the first quarter of premium price decline since 2017. Property premiums took the biggest hit, falling 5.8% in a “significant acceleration” from two periods ago.
Insurance indexes are heavily weighted toward large P&C carriers such as Progressive Corp. NYSE: PGRChubb Ltd. NYSE: CBand Travelers Companies Inc. NYSE: TRV which live at the crossroads of the softening price cycle. But companies in life, group benefits, and supplemental health components are protected from commercial P&C price declines. While the P&C price cycle continues, the value and profitability industry continues to be undervalued, and that is exactly the area we will examine with our stock picks here.
A key theme when picking insurance stocks this cycle is insulation from the P&C commercial segment. Each of the following three companies has minimal P&C exposure and limited (or no) exposure to major indices.
MetLife: A Diversified Compounder With a Strong Dividend
MetLife Today
- 52 week interval
- $67.33
▼
$85.29
- Dividend Yield
- 2.80%
- The P/E ratio
- 16.40
- Target Value
- $95.31
Company MetLife Inc. NYSE: MET it is the only insurance stock listed here that has a significant weighting in the indices (about 5% of IAK's assets), but it cannot be blamed for poor performance.
MET shares have risen more than 17% in the past three months, fueled by a broad beat in earnings and dividend increases.
In the company's Q1 2026 numbers released on May 6, MetLife reported adjusted earnings of $1.6 billion and adjusted EPS of $2.42, up 18% and 23%, respectively. The company has also returned more than $1 billion to shareholders through buybacks and dividends. The dividend now pays $2.37 per share for the year following the increase, the 12th consecutive year of payout increases.
The stock is regaining momentum after breaking through a multi-year resistance level around $83. The Relative Strength Index (RSI) confirms bullish momentum, indicating that this breakout may have staying power.
Globe Life: Deep Value Escapes Index Decline
Globe Life Today
Globe Life
- 52 week interval
- $116.73
▼
$159.36
- Dividend Yield
- 0.83%
- The P/E ratio
- 11.02
- Target Value
- $174.11
Globe Life Inc. NYSE: GL focuses on life and supplemental health insurance for low- and middle-income families.
Although mid-market life and supplement insurance are not high-growth industries, they provide stable, long-term cash flows that do not tend to cycle.
The company reported Q1 2026 results roughly in line with market expectations, and management raised full-year EPS guidance to $15.40-$15.90. No need for a blowout report here, with the stock trading at just 10x forward earnings, a steep discount to both the insurance sector (12x earnings) and the S&P 500 (22x earnings).
The chart shows positive technical momentum as well. Now that the RSI is in a strong position, the stock's breakout above the 50-day moving average is likely to continue. Previous resistance areas are often supportive during breakouts, and the 50-day MA appears to be the new line in the sand for GL shares.
The Unum Group: High Yield Employment Insurance
Unum Group Today
- 52 week interval
- $68.28
▼
$86.88
- Dividend Yield
- 2.12%
- The P/E ratio
- 18.85
- Target Value
- $93.83
The Unum group NYSE: UNM and lacks representation in the major indices despite its continued compatibility with employment-linked carriers and disability groups, such as Colonial Life. Index providers may want to correct this error, as this company may be the group's best asset.
The stock trades at 9x forward earnings and 1.06x sales despite a 16% gain over the past three months, fueled by a high-low beat for Q1 2026. Revenue grew 8% year-over-year (YOY), largely due to a fading risk in the long-term care segment, and management increased the dividend for the 17th consecutive year.
A low-beta insurance with solid returns and a good story is like a mothball to high-investing moths. The stock is in the midst of a healthy breakout, notching new all-time highs with the Golden Cross forming at the 50-day and 200-day MAs. The RSI is also cooperating, maintaining its bullish level without crossing the Overbought threshold. More heights are on the way for this under-the-radar fusion machine.
Before you consider MetLife, you'll want to hear this.
MarketBeat tracks Wall Street's top and most effective research analysts and the stocks they recommend to their clients every day. MarketBeat identified five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and MetLife wasn't on the list.
Although MetLife currently has an Average Buy rating among analysts, top analysts believe these five stocks are the best.
View Five Stocks Here
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