Torchmark Corp (NYSE:TMK)

Based on Graham number valuation

The price ratio of stocks MET (MetLife, Inc.) and TMK (Torchmark Corp.) is currently at the local extremes above its average. Exotic analysis. http://www.pairslog.com/education/blog.php

As a former insurance actuary, I like:

(1) A business model in which the company serves identified niches for life insurance, where it costs less to acquire new business compared to competitors, providing a healthier profit margin.

(2) A strategy of reducing it's emphasis on its health insurance business, thus focusing on what it writes well - life insurance.

(3) Turning an underwriting profit which reduces TMK's need to rely fully on investment income to offset insurance losses.

(4) Strong management which owns a healthy stake in the TMK

(5) Low debt to equity (0.2), ROE = 13.6 surpasses industry, 3 year avg EPS growth surpasses industry, P/B = 1.0, P/E TTM = 7.6 , selling at 16% discount to Morningstar's recently reduced fair value.

Projected dividend is 1.4%. I think this company is a keeper.

PEG>1, S&P 1 or 2*, Reuters Underperform

The valuation based on future ernings looks solid

bullish

better financial investments, less risky, more cash

I used to work for on of its subsidiaries. Great products offered, just bad agents with bad ethics. I believe the products will override the agents' ethical levels. It should begin to gain more ground within a year.

See you below $5 along with HIG and MET

this company is corrupt as hell. while shareholders don't make shyt the executives make 100 million a year. sell your stocks in this company and show them the bird.

Life and Health Insurance no shortage here. Great Long-term value. These are products everyone needs!

Oldline insurance conglomerate with assets and managerment experience to bode well in most all economic booms or busts.

Buffet stock, fair price

Eventually, the bigger companies such as Prudential, NY Life, NW Mutual, and AIG(plus others I am sure I missed) will crush them. I can't see them doing better than keeping up with inflation, give or take .5%

This is the closest a publicly traded insurance stock gets to being a franchise, along with AFLAC. It's very similar to GEICO in that it has a very low expense ratio; it has a quasi-monopoly due to its sales to unions and other organizations; and if you take a look at its loss ratio over the past 10 years or so, it consistently is among the best in the business at handling risk.

In other words, Torchmark is about as predictable as you can be as an insurer.

Next, take a look at the return on equity for the past ten years -- averaging over 15% -- and the rate of growth in book value per share (Note -- there was spinoff of Waddell and Reed financial services a few years ago). This company has methodicallly increased the value of shareholders by buying back shares with its strong cash flow. The company's book value growth over the past ten years has been outstanding, and there's no reason to think that the next five years will be any different.

Finally, the company is now trading at a 1.6 price / book value. Delving a bit more deeply into the numbers (cash flow, value of the float, projected growth in equity, etc.), it's trading at a price that is reasonable both in terms of its historical pricing and in terms of intrinsic value.

Results at Liberty National are beginning to show signs of weakness. Life Premium was down 2% for the quarter while life sales were down 20% and first-year premium was down 19%. Life underwriting margin was down 12%. The only thing keeping earnings per share moving here are stock repurchases.

This one looked so good a year ago, but it's like they stopped trying.