Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

3 Insurance Stocks We Steer Clear Of

UNM Cover Image

Insurance providers use their expertise in risk assessment to help protect assets while offering consumers peace of mind through comprehensive coverage options. But worries about an economic slowdown and potential claims deterioration have kept sentiment in check, and over the past six months, the industry’s 1.8% return has trailed the S&P 500 by 7 percentage points.

A cautious approach is imperative when dabbling in insurance stocks as many are sensitive to catastrophic events and economic cycles. Taking that into account, here are three insurance stocks we’re swiping left on.

Unum Group (UNM)

Market Cap: $11.84 billion

Tracing its roots back to 1848 when financial security for workers was virtually non-existent, Unum Group (NYSE: UNM) provides workplace financial protection benefits including disability, life, accident, critical illness, dental and vision insurance primarily through employers.

Why Are We Cautious About UNM?

  1. Outsized scale creates growth headwinds as its 2.8% annualized net premiums earned increases over the last five years underperformed other financial institutions
  2. Estimated sales growth of 1.9% for the next 12 months implies demand will slow from its two-year trend
  3. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 9.7% annually

Unum Group’s stock price of $69.54 implies a valuation ratio of 1x forward P/B. Dive into our free research report to see why there are better opportunities than UNM.

Mercury General (MCY)

Market Cap: $4.30 billion

Founded in 1961 and maintaining a network of over 6,300 independent agents across the country, Mercury General (NYSE: MCY) is an insurance company that primarily sells automobile insurance policies through independent agents in 11 states, with a strong focus on California.

Why Does MCY Fall Short?

  1. Costs have risen faster than its revenue over the last four years, causing its combined ratio to worsen by 7.5 percentage points
  2. Capital trends were unexciting over the last five years as its 1.6% annual book value per share growth was below the typical insurance firm
  3. Low return on equity reflects management’s struggle to allocate funds effectively

At $77.62 per share, Mercury General trades at 2.1x forward P/B. If you’re considering MCY for your portfolio, see our FREE research report to learn more.

Fidelity National Financial (FNF)

Market Cap: $16.45 billion

Issuing more title insurance policies than any other company in the United States, Fidelity National Financial (NYSE: FNF) provides title insurance and escrow services for real estate transactions while also offering annuities and life insurance through its F&G subsidiary.

Why Do We Think Twice About FNF?

  1. Stagnant net premiums earned over the last five years suggest the firm needs alternative growth strategies
  2. Costs have risen faster than its revenue over the last four years, causing its pre-tax profit margin to decline by 10.9 percentage points
  3. Annual earnings per share growth of 3.4% underperformed its revenue over the last five years, showing its incremental sales were less profitable

Fidelity National Financial is trading at $60.53 per share, or 1.7x forward P/B. To fully understand why you should be careful with FNF, check out our full research report (it’s free).

Stocks We Like More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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