In the extreme short-run, mean-reversion dominates.  Over a year, momentum dominates.  Over a four year period mean-reversion returns.

The same applies to insurance stocks.  This is perhaps more true of insurance stocks, because the accounting is so opaque.  When accounting is opaque, it takes a longer period of time for market prices to catch up with the underlying reality.

I do not trust momentum naively.  I compare it to fundamentals and ask if it has more room to run or fall.  Remember, insurance is a mature industry… there are few sustainable competitive advantages here.  Near turning points, valuations are stretched or in the dumps.

That said, here is my table of momentum for the insurance industry:

companytickerimg_desc

mktcap

prchg_52w
Radian Group Inc.RDN0715 – Insurance (Property & Casualty)               882.0

155%

Homeowners Choice, Inc.HCI0715 – Insurance (Property & Casualty)               241.1

146%

Stewart Information Services CSTC0715 – Insurance (Property & Casualty)               528.1

100%

Imperial Holdings, Inc.IFT0712 – Insurance (Miscellaneous)                 89.7

86%

Kingsway Financial Services InKFS0715 – Insurance (Property & Casualty)                 54.0

68%

Atlantic American CorporationAAME0709 – Insurance (Life)                 69.7

63%

eHealth, Inc.EHTH0712 – Insurance (Miscellaneous)               506.9

59%

Investors Title CompanyITIC0715 – Insurance (Property & Casualty)               135.2

59%

First American Financial CorpFAF0715 – Insurance (Property & Casualty)           2,522.8

58%

Coventry Health Care, Inc.CVH0706 – Insurance (Accident & Health)           6,239.6

57%

Hilltop Holdings Inc.HTH0715 – Insurance (Property & Casualty)               753.0

55%

CNO Financial Group IncCNO0709 – Insurance (Life)           2,315.5

52%

Allstate Corporation, TheALL0715 – Insurance (Property & Casualty)         21,154.9

51%

Symetra Financial CorporationSYA0709 – Insurance (Life)           1,629.6

50%

American International Group,AIG0715 – Insurance (Property & Casualty)         54,180.4

46%

Sun Life Financial Inc. (USA)SLF0709 – Insurance (Life)         17,505.2

46%

Platinum Underwriters HoldingsPTP0715 – Insurance (Property & Casualty)           1,595.2

43%

Hartford Financial Services GrHIG0715 – Insurance (Property & Casualty)         10,829.2

41%

Lincoln National CorporationLNC0709 – Insurance (Life)           8,005.7

41%

Amtrust Financial Services, InAFSI0715 – Insurance (Property & Casualty)           2,232.4

40%

HCC Insurance Holdings, Inc.HCC0715 – Insurance (Property & Casualty)           3,989.2

39%

Fidelity National Financial InFNF0715 – Insurance (Property & Casualty)           5,669.5

38%

Horace Mann Educators CorporatHMN0715 – Insurance (Property & Casualty)               847.4

38%

Montpelier Re Holdings Ltd.MRH0715 – Insurance (Property & Casualty)           1,341.4

37%

Seabright Holdings IncSBX0715 – Insurance (Property & Casualty)               249.3

37%

Verisk Analytics, Inc.VRSK0712 – Insurance (Miscellaneous)           9,172.3

37%

AEGON N.V. (ADR)AEG0709 – Insurance (Life)         13,026.1

36%

Fortegra Financial CorpFRF0712 – Insurance (Miscellaneous)               179.3

35%

XL Group plcXL0715 – Insurance (Property & Casualty)           8,353.8

35%

Primerica, Inc.PRI0709 – Insurance (Life)           1,877.3

34%

Allied World Assurance Co HoldAWH0715 – Insurance (Property & Casualty)           2,946.7

34%

Travelers Companies, Inc., TheTRV0715 – Insurance (Property & Casualty)         29,569.3

33%

Everest Re Group LtdRE0715 – Insurance (Property & Casualty)           5,944.0

33%

Prudential Public Limited CompPUK0709 – Insurance (Life)         38,254.3

33%

CIGNA CorporationCI0706 – Insurance (Accident & Health)         16,718.9

33%

United Insurance Holdings CorpUIHC0715 – Insurance (Property & Casualty)                 91.9

32%

Partnerre LtdPRE0715 – Insurance (Property & Casualty)           5,236.2

32%

Cincinnati Financial CorporatiCINF0715 – Insurance (Property & Casualty)           6,959.7

29%

Protective Life Corp.PL0709 – Insurance (Life)           2,500.8

29%

Argo Group International HoldiAGII0715 – Insurance (Property & Casualty)               926.7

29%

Hallmark Financial Services, IHALL0715 – Insurance (Property & Casualty)               171.6

26%

Aspen Insurance Holdings LimitAHL0715 – Insurance (Property & Casualty)           2,380.3

26%

Alterra Capital Holdings LtdALTE0715 – Insurance (Property & Casualty)           2,911.1

25%

Torchmark CorporationTMK0709 – Insurance (Life)           5,314.2

24%

Alleghany CorporationY0715 – Insurance (Property & Casualty)           6,048.5

24%

Eastern Insurance Holdings IncEIHI0709 – Insurance (Life)               135.2

24%

Berkshire Hathaway Inc.BRK.A0715 – Insurance (Property & Casualty)      242,512.2

23%

Manulife Financial CorporationMFC0709 – Insurance (Life)         26,899.6

23%

Arch Capital Group Ltd.ACGL0715 – Insurance (Property & Casualty)           6,188.5

22%

Enstar Group Ltd.ESGR0715 – Insurance (Property & Casualty)           2,006.2

22%

Axis Capital Holdings LimitedAXS0715 – Insurance (Property & Casualty)           4,664.5

22%

Genworth Financial  IncGNW0709 – Insurance (Life)           4,647.8

21%

Aon PLCAON0712 – Insurance (Miscellaneous)         18,361.6

21%

American Equity Investment LifAEL0709 – Insurance (Life)               862.9

20%

White Mountains Insurance GrouWTM0715 – Insurance (Property & Casualty)           3,585.0

20%

ACE LimitedACE0715 – Insurance (Property & Casualty)         28,999.2

20%

Markel CorporationMKL0715 – Insurance (Property & Casualty)           4,581.2

19%

United Fire Group, Inc.UFCS0715

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