Infinity Property and Casualty CorporationIPCC

Morningstar Rating

Stock Research and Analysis

by Drew Woodbury

Infinity's marketing strategy targets customers many of its competitors avoid. Rather than writing auto insurance for the masses, Infinity focuses on offering urban customers--primarily Hispanics--low-cost auto insurance. This niche focus has historically Read more

Bulls Say

Most states require motorists to carry auto insurance coverage. This mandate should help keep premiums somewhat stable during recessions.

Infinity has proved that it can price insurance profitably for its targeted customers. Its underwriting margins are among the best in the industry.

Infinity is one of the largest writers of nonstandard auto insurance policies. It has built a strong reputation in Hispanic communities. Read more

Bears Say

The low-income, urban customers Infinity targets are more likely to drop insurance coverage during a recession.

A significant amount--around 50%--of Infinity's premiums comes from the state of California. Continued economic weakness in this state would put further pressure on the firm's premium growth.

Growth has been stagnant at Infinity. Since it's IPO in 2003 gross written premiums have declined at compound annual rate of 2%. Read more

Strategy

Infinity targets customers within a specialized niche of the nonstandard auto insurance market. Its primary customers are low-income urban (mainly Hispanic) drivers. By focusing on one area of the auto Read more

Management

We believe that corporate stewardship at Infinity is fair. The company is led by chairman and CEO James Gober. Although we like that Gober has worked his way through the ranks at Infinity before becoming the chief executive, we would prefer his two Read more

Profile

Infinity Property and Casualty went public in 2003 after separating from American Financial Group. Like its former parent, Infinity is focused on property and casualty insurance, Read more

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