According to the Financial News Network, Lincoln National Corporation currently has the lowest price to earnings to growth ratio in the life insurance and annuities industry. A PEG ratio is an indication of a company's value based on the price of stock versus the expected growth of the company. The lower this ratio is, the higher the value of the company.
Lincoln National sells a variety of financial protection products like fixed, variable and indexed annuities, and variable, term and universal life insurance. On September 28, the company traded 6.2 million stocks and had a PEG of 0.4 despite underperforming in more than one major index, according to the source. Prudential Financial and Metlife rounded out the top three insurers in PEG, with favorable stock prices.
Insurance stock has been inconsistent in recent months, in what is, overall, a volatile market. Companies with fixed rate annuities that guarantee payouts, and life insurers that have adopted hybrid policies to include long-term care riders may represent stocks with strong potential, however, as enrollment has seen recent gains. In particular, annuities sales have seen gains as investors take advantage of low rates for variable annuities, and life insurance policies that feature long-term care options have increased in popularity.