The National Security Group, Inc. (NSEC)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
The National Security Group, Inc. (NSEC) trades at $16.36. The National Security Group, Inc. is an insurance holding company offering property and casualty, and life insurance products in the United States. Sector: Financial services.
Price live · AI analysis from Mar 18, 2026Analyst Coverage for NSEC: NSEC does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates NSEC against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
NSEC: 1/1 perspectives are bearish.
How is this calculated? →The National Security Group, Inc. (NSEC) Financial Services Profile
The National Security Group, Inc. provides property and casualty, and life insurance, focusing on home insurance and supplemental health products. Operating mainly in the Southeastern U.S., the company distributes through independent agents and brokers, facing competition from larger national and regional insurance providers while maintaining a niche in specific regional markets.
What Is the Investment Thesis for NSEC?
The National Security Group, Inc. presents a focused investment opportunity within the regional insurance market. With a P/E ratio of 71.0 and a dividend yield of 1.47%, the company shows potential for value investors. The company's high gross margin of 100.0% indicates efficient cost management in its insurance operations. Growth catalysts include expanding its independent agent network and increasing penetration in existing markets. However, the company's small size and geographic concentration pose risks, particularly in the face of large-scale catastrophic events. Investors should monitor the company's ability to maintain profitability and manage risk effectively in a competitive insurance landscape.
Based on FMP financials and quantitative analysis
NSEC Key Highlights
- P/E ratio of 71.0, reflecting investor expectations of future earnings growth.
- Gross Margin of 100.0%, indicating efficient underwriting and claims management.
- Dividend Yield of 1.47%, providing a modest income stream for investors.
- Beta of -0.38, suggesting the stock is less volatile than the overall market.
- Operations in multiple states including Alabama, Florida, Georgia, and others, providing geographic diversification within the Southeastern U.S.
Who Are NSEC's Competitors?
NSEC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| EUCR Eucrates Biomedical Acquisition Corp. | $10.04 | +0.00% | $42.23M | 44 |
| MAAS Highest Performances Holdings Inc. | $15.32 | +1.93% | $4.92B | 63 |
| MSSA Metal Sky Star Acquisition Corporation | $11.50 | +0.00% | $43.21M | 44 |
| NCAC Newcourt Acquisition Corp | $4.79 | -18.68% | $42.09M | 44 |
| BZLYF Beazley plc | $17.30 | +0.00% | $10.23B | 70 |
| DIISY Direct Line Insurance Group plc | $18.00 | +15.16% | $5.85B | 66 |
| SKWD Skyward Specialty Insurance Group, Inc. | $59.63 | -2.91% | $2.42B | 64 |
| AII American Integrity Insurance Group, Inc. | $18.89 | -2.00% | $369.97M | 63 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are NSEC's Key Strengths?
- Established presence in Southeastern U.S. markets.
- Distribution network of independent agents and brokers.
- Diverse product portfolio including property and casualty, and life insurance.
- High gross margin of 100.0%.
What Are NSEC's Weaknesses?
- Small size compared to larger national insurance companies.
- Geographic concentration in the Southeastern U.S.
- Limited brand recognition outside of its core markets.
- Low profit margin of 0.9%.
What Could Drive NSEC Stock Higher?
- Expansion of independent agent network to increase market reach.
- Focus on increasing penetration in existing markets through targeted marketing.
- Introduction of new insurance products to meet evolving customer needs.
- Leveraging technology to improve operational efficiency and customer service.
What Are the Key Risks for NSEC?
- Rich valuation — a P/E of 71.0 runs well above the Financial Services sector’s ~18x, leaving little room for a miss.
- Exposure to catastrophic events such as hurricanes and floods in its operating region.
- Competition from larger national insurance companies with greater resources.
- Changes in regulatory requirements that could increase compliance costs.
- Economic downturns that could reduce demand for insurance products.
What Are the Growth Opportunities for NSEC?
- Expansion of Independent Agent Network: NSEC can grow by expanding its network of independent agents in existing and new markets within its operational footprint. By increasing the number of agents selling its products, the company can reach a wider customer base and increase premium revenue. The market for independent insurance agents is estimated to be $33 billion in 2026, offering significant potential for NSEC to capture a larger share. Timeline: Ongoing.
- Increased Penetration in Existing Markets: NSEC can focus on increasing its market share in the states where it already operates. By targeting specific customer segments and offering tailored insurance products, the company can deepen its penetration and drive revenue growth. The property and casualty insurance market in the Southeastern U.S. is projected to grow at an annual rate of 4% through 2028, providing a favorable backdrop for NSEC's expansion efforts. Timeline: Ongoing.
- Product Diversification: NSEC can diversify its product offerings to include additional insurance products and services. By expanding its product portfolio, the company can cater to a wider range of customer needs and increase its revenue per customer. The market for supplemental health insurance products is growing rapidly, driven by rising healthcare costs and increasing consumer awareness. Timeline: 2027-2028.
- Technological Upgrades: Investing in technology to improve operational efficiency and customer service can drive growth. Implementing digital platforms for policy management, claims processing, and customer communication can reduce costs, improve customer satisfaction, and enhance the company's competitive position. The market for insurance technology is expected to reach $159 billion by 2030, indicating a significant opportunity for NSEC to leverage technology for growth. Timeline: 2026-2027.
- Strategic Acquisitions: NSEC can pursue strategic acquisitions of smaller insurance companies or agencies to expand its market presence and product offerings. Acquisitions can provide access to new markets, customer bases, and distribution channels, accelerating the company's growth trajectory. The insurance industry is consolidating, creating opportunities for NSEC to acquire complementary businesses. Timeline: 2027-2029.
What Opportunities Does NSEC Have?
- Expansion into new geographic markets.
- Increased penetration in existing markets through targeted marketing and sales efforts.
- Product diversification to meet evolving customer needs.
- Leveraging technology to improve operational efficiency and customer service.
What Threats Does NSEC Face?
- Competition from larger national insurance companies.
- Exposure to catastrophic events such as hurricanes and floods.
- Changes in regulatory requirements.
- Economic downturns that could reduce demand for insurance products.
What Are NSEC's Competitive Advantages?
- Established presence in specific regional markets.
- Distribution network of independent agents and brokers.
- Long-standing relationships with customers.
- Expertise in underwriting and claims management.
What Does NSEC Do?
Founded in 1947 and based in Elba, Alabama, The National Security Group, Inc. (NSEC) operates as an insurance holding company providing a range of insurance products and services across the United States. The company is structured into two primary segments: Property and Casualty (P&C) Insurance, and Life Insurance. The P&C segment focuses on underwriting home insurance coverage, with key lines of business including dwelling fire and extended coverage, mobile homeowners, and other liability insurance. This segment operates in Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Oklahoma, South Carolina, Tennessee, and West Virginia, and on a surplus lines basis in Louisiana. The Life Insurance segment offers ordinary life, accident and health, supplemental hospital, and cancer insurance products. These products are available in Alabama, Florida, Georgia, Mississippi, South Carolina, Tennessee, and Texas. The company distributes its insurance products through a network of independent agents and brokers, as well as through home service agents, emphasizing personalized service and local market knowledge. The National Security Group targets individuals and families seeking comprehensive insurance solutions, with a particular focus on underserved markets within its operational footprint. The company aims to provide reliable coverage and build long-term relationships with its customers through its multi-channel distribution network.
What Products and Services Does NSEC Offer?
- Provides property and casualty insurance.
- Offers life insurance products.
- Underwrites home insurance coverage.
- Provides dwelling fire and extended coverage.
- Offers mobile homeowners insurance.
- Provides other liability insurance.
- Offers accident and health insurance.
- Provides supplemental hospital and cancer insurance.
How Does NSEC Make Money?
- Underwrites insurance policies, collecting premiums from policyholders.
- Invests premium income to generate investment returns.
- Pays out claims to policyholders who experience covered losses.
- Distributes products through independent agents, brokers, and home service agents.
What Industry Does NSEC Operate In?
The National Security Group, Inc. operates within the property and casualty, and life insurance industry, a sector characterized by intense competition and evolving regulatory landscapes. The industry is influenced by factors such as interest rates, economic growth, and demographic shifts. The company competes with larger national and regional players, as well as smaller niche insurers. Market trends include increasing demand for specialized insurance products, the adoption of digital technologies, and the growing importance of data analytics in underwriting and risk management. The company's focus on specific regional markets and distribution through independent agents positions it to cater to local customer needs.
Who Are NSEC's Key Customers?
- Homeowners seeking property insurance coverage.
- Individuals and families seeking life insurance protection.
- Individuals seeking supplemental health insurance.
- Customers in Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Oklahoma, South Carolina, Tennessee, Texas and West Virginia.
ROE 1%Key Financial Metrics
Return on equity for The National Security Group, Inc. stands at 1.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.4%, showing how much profit it generates from its asset base. NSEC trades at a trailing price-to-earnings ratio of 71.05, above the Financial Services sector average of ~18x. A current ratio of 54.17 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 1.4%, the inverse of the P/E and a quick read on earnings relative to price.
Company Profile
The National Security Group, Inc. operates in the Insurance - Property & Casualty industry within the Financial Services sector. It is headquartered in Elba, US. The company is led by CEO William Brunson. NSEC has traded publicly since 1980.
Net buyingInsider Activity
The most recent 6 insider filings for The National Security Group, Inc. break down as 3 sales and 3 purchases. On net that is roughly 2K shares acquired (about $0) — insiders putting money in tends to read as conviction.
NSEC Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis
Bull Case vs Bear Case
Bull Case
- Established presence in Southeastern U.S. markets.
- Distribution network of independent agents and brokers.
- Diverse product portfolio including property and casualty, and life insurance.
- High gross margin of 100.0%.
Bear Case
- Small size compared to larger national insurance companies.
- Geographic concentration in the Southeastern U.S.
- Limited brand recognition outside of its core markets.
- Low profit margin of 0.9%.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
NSEC Latest News
No recent news available for NSEC.
NSEC Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for NSEC.
Price Targets
Wall Street price target analysis for NSEC.
NSEC MoonshotScore
What does this score mean?
The MoonshotScore rates NSEC's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: William Brunson
CEO
William Brunson serves as the CEO of The National Security Group, Inc. He has been with the company for several years, holding various leadership positions. His background includes extensive experience in the insurance industry, with a focus on underwriting, risk management, and business development. He is responsible for overseeing the company's strategic direction, financial performance, and day-to-day operations. He manages a team of 72 employees.
Track Record: Under William Brunson's leadership, The National Security Group, Inc. has focused on maintaining profitability and managing risk effectively. He has overseen the expansion of the company's independent agent network and the introduction of new insurance products. He has also focused on improving operational efficiency and customer service through technology upgrades. His leadership has been instrumental in navigating the challenges of the competitive insurance landscape.
The National Security Group, Inc. Financial Services Stock: Key Questions Answered
What does The National Security Group, Inc. do?
The National Security Group, Inc. operates as an insurance holding company, providing property and casualty, and life insurance products in the United States. Its P&C segment focuses on home insurance, while the Life Insurance segment offers ordinary life, accident and health, and supplemental health insurance. The company distributes its products through independent agents, brokers, and home service agents, primarily in the Southeastern U.S. The company aims to provide reliable coverage and build long-term relationships with its customers through its multi-channel distribution network.
What do analysts say about NSEC stock?
Analyst coverage of The National Security Group, Inc. (NSEC) is limited, reflecting its small market capitalization and regional focus. Key valuation metrics include a P/E ratio of 71.0 and a dividend yield of 1.47%. Growth considerations center on the company's ability to expand its market share in the competitive insurance landscape, manage risk effectively, and leverage technology to improve operational efficiency. Investors should conduct their own due diligence and consider the company's specific risk factors and growth opportunities.
What are the main risks for NSEC?
The National Security Group, Inc. faces several key risks, including exposure to catastrophic events such as hurricanes and floods in its operating region. The company also faces competition from larger national insurance companies with greater resources. Changes in regulatory requirements could increase compliance costs, and economic downturns could reduce demand for insurance products. The company's small size and geographic concentration also pose risks, particularly in the face of large-scale catastrophic events. Effective risk management is crucial for the company's long-term success.
How does The National Security Group, Inc. manage its investment portfolio?
As an insurance holding company, The National Security Group, Inc. invests its premium income to generate investment returns, which contribute to its overall profitability. The company's investment portfolio typically includes a mix of fixed-income securities, such as bonds, and equity investments. The company's investment strategy focuses on balancing risk and return, with the goal of generating stable income and capital appreciation. The company's investment decisions are influenced by factors such as interest rates, economic conditions, and regulatory requirements. The performance of the investment portfolio is a key driver of the company's financial results.
How sensitive is NSEC to interest rate changes?
The National Security Group, Inc.'s profitability is influenced by interest rate changes, as its investment portfolio includes fixed-income securities. Rising interest rates can increase the yield on new investments, while falling interest rates can reduce investment income. The company's net interest margin, which is the difference between its investment income and its cost of funds, is sensitive to interest rate movements. The company manages its interest rate risk by diversifying its investment portfolio and using hedging strategies. Changes in interest rates can also affect the demand for insurance products, as higher rates can increase the cost of borrowing and reduce consumer spending.
What are the key factors to evaluate for NSEC?
Evaluate NSEC on fundamentals, analyst consensus, and risk factors. P/E: 71.0x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does NSEC data refresh on this page?
NSEC prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven NSEC's recent stock price performance?
The National Security Group, Inc. (NSEC) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Established presence in Southeastern U.S. markets. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Limited analyst coverage for NSEC may affect the availability of detailed financial analysis.
- The company's small size and regional focus may make it more susceptible to market fluctuations.