Many insurers see an opportunity to take business from a wounded American International Group (AIG), once one of the globe's largest P&C insurers. The downside from AIG's woes is that it has been said to be cutting rates, undermining rivals' efforts to lift pricing.

The reinsurers, however, should have a strong 2009 given the light hurricane season and solid reserves. Gallant favors Everest Re, now around 85, a slight discount to book value of $91 a share and eight times this year's projected earnings. The analyst has a $95 price target.

Chubb now trades near $49, 1.2 times its book value, and about nine times estimated 2009 profits of $5.38 a share and projected 2010 earnings of $5.34 a share. "Chubb is a conservatively run, high-quality company that has bought back stock all through the financial crisis," Gallant says. He carries an Outperform rating on the shares and a $57 price target.

W.R. Berkley, a well-managed insurer with a strong underwriting record, now trades around 24, or 1.2 times book value. It fetches about 10 times this year's estimated profits. Ace, headed by Evan Greenberg, the son of former AIG CEO Hank Greenberg, is emerging as a global insurer that should take business from AIG. Ace's shares, at 50, trade for about book value and for under seven times this year's estimated earnings.

PartnerRe, at 73, trades at book value and for seven times estimated 2009 profits. Gallant carries an $88 price target.

RenaissanceRe (RNR) usually commands one of the highest price/book ratios in the sector because it consistently has produced some of the highest returns. Its shares look appealing at 53, 1.2 times book value and six times projected 2009 profits.