The Ten Highest Yielding Life Insurance Companies

There has been a lot of negative news affecting the banks, mortgage companies and, to a lesser extent, investment brokerage firms, such as the sub-prime debacle, increasing foreclosures, rising interest rates, and a glut of real estate inventory.

However, in the financial services industry, there has been a group that is somewhat overlooked, the life insurance companies. There will obviously be some exposure to the sub-prime problems, but not to the extent of the banks and mortgage companies. Fortunately, there are about ten life insurance companies that pay dividends of more than 1%.

The following are the top ten by yield sorted by highest to lowest:

Prudential plc (PUK), which trades on the New York Stock Exchange, is the London-based insurance and financial services company, not to be confused with the American-based Prudential Financial Inc. (PRU). Prudential plc is primarily involved in the business of life insurance, pensions, and annuities, but it also provides mortgage banking services. It has a P/E of 39, a PS of 0.97, and a yield of 3.1%.

Presidential Life (PLFE), which trades on the NASDAQ, is a Nyack, New York-based firm which provides various types of insurance products including graded benefit life insurance, universal life, whole life, term life, single premium annuities, single premium deferred annuities, single premium immediate products, flexible premium annuities and group terminal funding annuities. It has a P/E of 9.95, and a yield of 2.9%.

Sun Life Financial (SLF), which trades on the New York Stock Exchange, is a Canadian-based life, and health insurance company which also provides savings, retirement, and pension products. It has a P/E of 14.35, a price earnings to growth ratio of 1.29, and a yield of 2.4%.

Lincoln National (LNC), is another NYSE-traded life insurance company which provides a yield of 2.4%. It has a P/E of 12.18, and a PEG of 1.13.

Manulife Financial Corp. (MFC), is a life insurance firm which trades on the NYSE. The stock is generating a yield of 2.1%. It has a P/E of 15.62, and a PEG of 1.25.

Protective Life (PL), trades on the NYSE, and produces a yield of 2%. The P/E for this life insurer is 10.6, and the PEG is 1.26.

American National Insurance (ANAT), is a NASDAQ-traded insurance company which has a yield of 1.9%. It has a P/E of 14.99.

Nationwide Financial Services (NFS), is a provider of various types of annuity products along with life insurance. This NYSE-traded company has a P/E of 11.5, a PEG of 1.37, and a yield of 1.7%.

FBL Financial (FFG), offers life insurance, annuities, and property and casualty, insurance products. It has a P/E of 13.09, a PEG of 1.3, and a yield of 1.3%.

Genworth Financial (GNW), provides life, health, and long term care insurance products, along with investment products. The stock has a P/E of 11.28, a PEG of 0.93, and a yield of 1.1%.