insurance can be insanely profitable

Insurance is a low-risk business, it has tacit state protection (try driving a car without car insurance) and it can’t easily be replaced.

Here’s how some insurance stocks have performed over the last 30 years:

Progressive (PGR).................................................95.548%
WR Berkley (BER)..................................................30.069%
AFLAC (AFL)...........................................................23.184%
Loews (LTR)...........................................................12.597%
Cincinnati Financial (CINF)......................................8.490%
American International Group (AIG)........................7.916%
Selective Insurance Group (SIGI)............................7.444%
Protective Life (PL)..................................................4.617%
First American (FAF).................................................4.055%
Old Republic International (ORI)..............................3.947%

Meanwhile, the S&P 500 is up about 1.230%.