Chicago, IL – November 27, 2024 – Zacks.com has just announced an exciting list of stocks featured in the Analyst Blog. Every day, the Zacks Equity Research analysts delve into the latest news and events that impact stocks and the financial markets. Stocks recently making an appearance in the blog include First American Financial Corp. (FAF), Cincinnati Financial Corp. (CINF), CNA Financial Corp. (CNA), and American Financial Group (AFG). These companies are at the forefront of the property and casualty insurance industry, which is showing great promise.

Industry Overview and Opportunities

The Zacks Property and Casualty Insurance industry is primed for growth. With better pricing, prudent underwriting, increased exposure, an improving rate environment, and a solid capital position, insurers are well-positioned to thrive. The ongoing economic expansion is providing a favorable backdrop for the industry. Its Zacks Industry Rank #31 places it in the top 12% of over 250 Zacks industries, confirming its buoyancy.However, the industry does face challenges such as higher catastrophe events, both natural and man-made, which can drag down underwriting profit. Despite these challenges, the P&C insurance industry has delivered impressive returns in the year-to-date period, outperforming the Zacks S&P 500 composite and the Finance sector.Industry players with an impressive dividend history have always attracted yield-seeking investors. Property and casualty insurers like those mentioned above have been favorites due to their solid fundamentals that ensure consistent dividend payments.Technology is also playing a significant role in the industry. The increased use of blockchain, artificial intelligence, advanced analytics, telematics, cloud computing, and robotic process automation is expediting business operations and saving costs. Insurers are investing heavily in technology to improve their efficiency and competitiveness.

First American Financial Corp.

With a market capitalization of $7.17 billion, First American Financial provides financial services through the Title Insurance and Services and Home Warranty segments. It is well-positioned to capitalize on the increased demand among millennials for first-time home purchases. This Zacks Rank #1 insurer is set to rise on its growing leadership in title data, benefiting from proprietary data extraction, sturdy distribution relationships, prudent underwriting, and continued investments in technology.The insurer's payout ratio is 58, with a five-year annualized dividend growth rate of 5.19%. Its current dividend yield of 3.1% is better than the industry average of 0.2%. The insurer's quarterly dividend payment has witnessed a 10-year CAGR (2015-2024) of 8%. This shows the company's commitment to returning value to shareholders.First American Financial Corporation is focused on strategic initiatives to strengthen its product offerings, intensify focus on its core business, invest in technology, and redeploy capital to areas that offer higher returns. Banking on its strong operational performance, the company distributes wealth to its shareholders via dividends and has been increasing its dividend payout each year while buying back shares.

Cincinnati Financial Corp.

Cincinnati Financial, with a market capitalization of $24.92 billion, provides property casualty insurance products in the United States. It is poised to gain from price increases, a higher level of insured exposures, and several growth initiatives such as the expansion of Cincinnati Re and Cincinnati Global. This P&C insurer aims to grow its Commercial Lines and Excess and Surplus lines through additional agency appointments, expansion of local field presence, higher renewal written premiums, and higher average renewal estimated pricing.The insurer's payout ratio is 48, with a five-year annualized dividend growth rate of 7.97%. The dividend yield of 2.03% makes it an appealing choice for investors seeking stable returns. The insurer's quarterly dividend payment has witnessed a 10-year CAGR (2015-2024) of 5.8%.Cincinnati Financial's consistent cash flow continues to boost its liquidity. In terms of capital management, the company has returned capital to shareholders through share buybacks, regular cash dividends, and special dividends. The board has increased the annual cash dividend rate for 64 consecutive years, a record that is matched by only seven other publicly traded companies in the United States. This reflects the company's strong operating performance and management's and the board's positive outlook and confidence in its outstanding capital, liquidity, and financial flexibility.

CNA Financial Corp.

CNA Financial, with a market capitalization of $13.46 billion, offers commercial P&C insurance products mainly across the United States. The insurer's focus on better pricing, increased exposure, higher new businesses, and retentions across its Specialty, Commercial, and International segments positions it well for growth. Stable fixed-income returns and higher limited partnership returns should continue to support its investment results. The insurer currently carries a Zacks Rank #3.The insurer's payout ratio is 36, with a five-year annualized dividend growth rate of 4.60%. Its current dividend yield is 3.5%. The insurer's quarterly dividend payment has witnessed a 10-year CAGR (2015-2024) of 5.8%.CNA Financial boasts a solid balance sheet with capital remaining above the target levels required for all ratings. This, along with sufficient cash flows, enables the company to engage in shareholder-friendly moves like dividend hikes. On the back of a disciplined execution, denoted by strong underwriting results and confidence in future earnings performances, the company has hiked its dividend over the past couple of years. Thus, the company remains committed to returning more value to shareholders.

American Financial Group

American Financial, with a market capitalization of $12.51 billion, is an insurance holding company that provides specialty property and casualty insurance products in the United States. It is set to benefit from business opportunities, growth in the surplus lines and excess liability businesses, and higher retentions in the renewal business, which boost premium growth.The insurer's payout ratio is 27, with a five-year annualized dividend growth rate of 11.63%. Its current dividend yield is 2.15%. The insurer's quarterly dividend payment has witnessed a 10-year CAGR (2015-2024) of 31.9%.American Financial has traditionally maintained a moderate adjusted financial leverage of around 20%, with a good cash flow and interest coverage ratio. This Zacks Rank #3 insurer scores strongly with credit rating agencies. In each of the last 18 years, the company has successfully increased its dividends.The robust operating profitability at the P&C segment, a stellar investment performance, and effective capital management support effective shareholders' return. The insurer expects its operations to continue to generate significant excess capital throughout the remainder of 2024, providing ample opportunity for additional share repurchases or special dividends over the next year.Since 2000, our top stock-picking strategies have outperformed the S&P's +7.0 average gain per year. Amazingly, they have achieved average gains of +44.9%, +48.4%, and +55.2% per year. Today, you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.