We recently published a list of the 10 Most Undervalued Insurance Stocks to Buy Now. In this article, we are going to take a look at where MetLife, Inc. (NYSE:MET) stands against the other undervalued insurance stocks.

The insurance industry has performed better in 2025 than the broader market. The S&P 500 index, which tracks large-cap stocks, has declined over 4.50% so far in 2025. In comparison, two of the leading insurance ETFs, the S&P Insurance ETF and the iShares US Insurance ETF, have surged over 3% and 4.50% year-to-date, respectively.

Insurance Industry in the United States

Despite the losses from wildfires, the analysts see a higher upside for insurance stocks compared to the broader market. There are different reports on the insured losses in Los Angeles. Verisk anticipates insured losses between $28 billion and $35 billion. At the same time, a new report from the UCLA Anderson Forecast indicates that wildfires in L.A. County may have caused total losses ranging between $95 billion and $164 billion, with insured losses estimated at $75 billion.

Earlier in January, Fitch Ratings reported that the losses are likely to “materially exceed” highs from past wildfire events but are unlikely to impact the ratings of property and casualty (P&C) insurers and reinsurers.

“Insured losses should remain within rating sensitivities for affected insurers, given ample capital levels, diversified risk exposure, and insurers’ ability to increase premium rates,” Fitch Ratings said.

Despite the losses, the insurance industry in the U.S. is overall balanced and remains positive. The U.S. has the largest insurance market in the world. The combined value of America’s insurance market is approximately $1.7 trillion, as of 2025. The U.S. has some of the largest insurance companies by assets that influence the global insurance markets.

The P&C insurance sector in the U.S. generated $9.3 billion in underwriting gains during the first quarter of 2024, according to a report by Deloitte. This was a major improvement from an $8.5 billion loss in Q1 2023. The industry also increased its combined ratio to 94.2%, driven by increases in rates in the personal lines sector outweighing the cost of claims.

An insurance agent at their desk consulting a customer about property & casualty insurance.

Our Methodology

We used a Finviz screener to shortlist Insurance companies with a forward P/E under 20. Finally, we listed the most undervalued insurance stocks based on the number of hedge fund holders, as of Q4 2024. The stocks are ranked in ascending order of the hedge fund sentiment.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

MetLife, Inc. (NYSE:MET)

Forward P/E: 8.45

No. of Hedge Fund Holders: 54

MetLife, Inc. (NYSE:MET) is the largest U.S. life insurer and has a huge retirement solutions business. It has a strong presence in more than 40 markets worldwide, with leading positions in the US, Japan, Latin America, Asia, Europe, the Middle East, and Africa. MetLife provides various products including health insurance products, including accident and health insurance, disability insurance, and critical illness insurance.

On February 28, Morgan Stanley analyst Nigel Dally increased the price target of MET shares from $101 to $109, maintaining an Overweight rating on the shares. The analyst highlights the strong momentum in the industry, stating that life insurers are in a better operating environment. Dally has raised the price target of MET because of the industry’s attractive view.

MetLife, Inc. (NYSE:MET) recently announced its five-year growth strategy, New Frontier. The growth strategy focuses on expansion in high-growth international markets by leveraging its strong position in Latin America and Asia. The company will also explore opportunities in emerging regions through new distribution methods and product and channel diversification. The life insurer is aiming for double-digit growth in adjusted EPS and a 15-17% growth in adjusted ROE. In addition, the company aims to minimize its expenses and turn over $25 billion in FCF.

Overall MET ranks 3rd on our list of the Most Undervalued Insurance Stocks to Buy Now. While we acknowledge the potential of MET as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.