When we think about insurance, life, home and auto policies are what generally come to mind. But there is an entire ecosystem of risk management products out there covering a wide variety of assets and risks. For our latest Best Dividend Stocks Model Portfolio pick this fact has been a boon, allowing it to generate decades’ worth of premiums and float interest. And it’s rewarded its investors too with a growing 3.45% yield!
You can check out the Best Dividend Stocks Model Portfolio to explore all the stocks.
The real reason for our pick’s success remains its focus on the specialty insurance market. Insuring asset-backed areas like trucking fleets, airplanes and manufacturing plants takes a deft touch. And with that, premiums are often higher than a standard life insurance policy. Because of this, our pick has long been able to generate strong investment portfolio profits. Meanwhile, technology, successful reinsurance and risk management have helped it generate underwriting gains.
Going forward, complex risks like cybersecurity and professional insurance needs are only growing. Our firm’s long history of providing specialty insurance needs puts it in the driver’s seat for future demand, all while investors profit from its conservatism and float interest.
At the end of the day, insurance is a boring business, but our pick proves that it can be a wonderful one for investors to own.
