4 Stunning Insurance Stocks: Aviva plc, Standard Life Plc, RSA Insurance Group plc And Amlin plc

These 4 insurers look set to deliver superb returns: Aviva plc (LON: AV), Standard Life Plc (LON: SL), RSA Insurance Group plc (LON: RSA) and Amlin plc (LON: AML)

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The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.


With the long-term outlook for the FTSE 100 being relatively bright, high-beta stocks such as Aviva (LSE: AV) (NYSE: AV.US) could be worth buying at the present time. That’s because, should the wider market move higher, Aviva’s beta of 1.14 means that its shares should (in theory) move by 1.14% for every 1% change in the value of the FTSE 100.

In addition, Aviva also offers excellent value for money at its current price level. For example, it trades on a price to book (P/B) ratio of just 1.3 which, given its future potential to dominate the life insurance industry, appears to be very attractive. As such, Aviva seems to be a strong buy at the present time; even though its shares have already risen by 18% since the turn of the year.

Standard Life

Although Standard Life’s (LSE: SL) track record of profit growth is somewhat chequered, with it seeing profit decline in two of the last five years, it could be about to enter a purple patch. For example, its bottom line is expected to be 80% higher in 2016 than it was in 2014, which is a significant step forward for the business.

Furthermore, with Standard Life having a beta of 1.27, it could be an excellent performer in a bull market. That’s especially the case since its shares trade on a price to earnings (P/E) ratio of 18.2, which seems low given its aforementioned growth prospects.


RSA (LSE: RSA) continues to struggle to appeal to investors, which is evidenced by the fact that its shares have fallen by 3.5% since the turn of the year. However, for that reason, now could be a great time to buy a slice of it as its new strategy begins to have a positive impact on its top and bottom lines.

In fact, RSA is expected to return to profitability in the current year after two very disappointing, loss-making years. As such, it would be of little surprise for the market to begin to warm to RSA as we move through the year, especially since it trades on a forward P/E ratio of just 12.3.


If you had bought shares in Amlin (LSE: AML) five years ago, you would have received 123p per share in dividends during the period. That works out as a return of 30% on Amlin’s share price from five years ago and, looking ahead, its income prospects appear to be as bright as ever.

For example, Amlin currently yields a very appealing 5.7% and, best of all, its dividends appear to be very sustainable. That’s because they are currently covered 1.5 times by profit, so that even if Amlin endures a challenging period, it has ample headroom to continue to pay a rising dividend to its investors.

And, with interest rates set to remain low, it would be of little surprise if Amlin’s share price were bid up by yield-hungry investors.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

Peter Stephens owns shares of Amlin, Aviva, RSA Insurance Group, and Standard Life. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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