Insurance Stocks

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by Ticker Table

Last Updated

Best Insurance Stocks

Insurance stocks are stocks of the insurance companies that deal in life insurance, property or casualty insurance, accident and health insurance, surety and title insurance, and insurance brokers. Insurance stocks have experienced a sudden rally and outperformed the benchmarks in recent times due to booming business and rising demand.

Insurance stocks are a must in the investment portfolio due to stability and high returns. With the growth in the sales of retail insurance products, insurers have been able to increase their margins and become more profitable. This has further led to the uptick in insurance stocks and returns from them.

Ticker
Company Name
Last Price
1-Year Return
Market Cap
AFLAflac Incorporated$80.1715.74%46.4B
AIZAssurant, Inc.$172.5130.74%9.1B
CNOCNO Financial Group, Inc.$27.487.85%3.1B
EIGEmployers Holdings, Inc.$43.320.07%1.1B
GLREGreenlight Capital Re, Ltd.$11.9922.72%417.5M
GTSTriple-S Management Corporation#N/A#N/A#N/A
PRAProAssurance Corporation$13.55-31.39%690.6M
TRUPTrupanion, Inc.$35.28-43.96%1.5B
UNMUnum Group$48.7014.80%9.4B
ACGLOArch Capital Group Ltd.$23.43-1.01%32.6B
ACGLPArch Capital Group Ltd.#N/A#N/A#N/A
AIZPAssurant, Inc.$0.00-100.00%#N/A
AJGArthur J. Gallagher & Co.$240.5526.39%52.2B
AONAon plc$314.37-0.22%62.9B
BROBrown & Brown, Inc.$82.7342.83%23.5B
CRVLCorVel Corporation$249.6736.07%4.3B
EHTHeHealth, Inc.$7.03-30.33%199.4M
EQHAXA Equitable Holdings, Inc.$34.615.58%11.6B
ERIEErie Indemnity Company$355.4847.31%18.6B
FANHFanhua Inc.$5.40-31.30%306.4M
GSHDGoosehead Insurance, Inc$91.30114.47%3.5B
MMCMarsh & McLennan Companies, Inc.$200.9919.59%98.9B
WLTWWillis Towers Watson Public Limited Company#N/A#N/A#N/A
LFCChina Life Insurance Company Limited$0.2938.10%#N/A
METMetLife, Inc.$69.54-4.00%50.8B
INGING Groep N.V.$13.41-3.73%46.8B
PUKPrudential plc$20.76-34.41%28.0B
PRUPrudential Financial, Inc.$109.295.13%39.5B
MFCManulife Financial Corporation$24.7927.13%44.7B
PFGPrincipal Financial Group, Inc.$80.94-12.03%19.3B
LNCLincoln National Corporation$27.96-20.09%4.7B
GLGlobe Life Inc.$125.813.94%11.8B
RGAReinsurance Group of America, Incorporated$170.7215.36%11.3B
AEGAegon N.V.$5.794.89%10.6B
PRIPrimerica, Inc.$244.8943.45%8.6B
BHFBrighthouse Financial, Inc.$48.83-18.44%3.1B
BHFAPBrighthouse Financial, Inc.$24.10-4.86%3.1B
AELAmerican Equity Investment Life Holding Company$55.3816.42%4.4B
GNWGenworth Financial, Inc.$6.28-1.88%2.8B
FGFGL Holdings$44.8293.86%5.6B
FFGFBL Financial Group, Inc.$0.03#N/A31.3M
CBChubb Limited$251.0617.90%101.7B
AIGAmerican International Group, Inc.$70.3013.70%49.4B
PGRThe Progressive Corporation$189.2433.31%110.8B
ALLThe Allstate Corporation$161.8918.04%42.5B
TRVThe Travelers Companies, Inc.$219.0218.25%50.0B
SLFSun Life Financial Inc.$53.475.36%31.2B
HIGThe Hartford Financial Services Group, Inc.$93.0819.64%27.8B
CINFCincinnati Financial Corporation$112.41-11.29%17.6B
ACGLArch Capital Group Ltd.$87.4028.57%32.6B
MKLMarkel Corporation$1,469.669.04%19.3B
LLoews Corporation$75.2221.03%16.7B
WRBW. R. Berkley Corporation$82.2722.17%21.1B
CNACNA Financial Corporation$47.184.82%12.8B
YAlleghany Corporation$10.33-28.41%142.1M
REEverest Re Group, Ltd.$0.43#N/A18.6M
AFGAmerican Financial Group, Inc.$123.52-6.48%10.3B
RNRRenaissanceRe Holdings Ltd.$228.616.31%12.0B
FAFFirst American Financial Corporation$60.23-1.33%6.2B
ORIOld Republic International Corporation$29.069.78%8.1B
THGThe Hanover Insurance Group, Inc.$136.58-4.18%4.9B
RDNRadian Group Inc.$28.1626.39%4.3B
AXSAXIS Capital Holdings Limited$62.07-0.81%5.3B
MTGMGIC Investment Corporation$19.5137.59%5.3B
KMPRKemper Corporation$59.08-9.41%3.8B
RLIRLI Corp.$142.849.07%6.5B
ESGREnstar Group Limited$287.1316.80%4.6B
SIGISelective Insurance Group, Inc.$105.494.00%6.4B
WTMWhite Mountains Insurance Group, Ltd.$1,762.0016.16%4.5B
ANATAmerican National Insurance Company#N/A#N/A#N/A
NGHCPNational General Holdings Corp.#N/A#N/A#N/A
MCYMercury General Corporation$46.1834.17%2.6B
NGHCNNational General Holdings Corp.#N/A#N/A#N/A
NGHCONational General Holdings Corp.#N/A#N/A#N/A
NGHCNational General Holdings Corp.#N/A#N/A#N/A
ARGOArgo Group International Holdings, Ltd.$0.17#N/A3.7M
KNSLKinsale Capital Group, Inc.$437.5746.04%10.1B
HMNHorace Mann Educators Corporation$37.60-0.08%1.5B
SAFTSafety Insurance Group, Inc.$86.812.00%1.3B
STFCState Auto Financial Corporation#N/A#N/A#N/A
AMSFAmerisafe, Inc.$50.59-7.09%970.4M
JRVRJames River Group Holdings, Ltd.$10.59-53.27%398.6M
PLMRPalomar Holdings, Inc.$73.6540.26%1.8B
UFCSUnited Fire Group, Inc.$24.76-11.54%625.6M
STCStewart Information Services Corporation$63.2135.88%1.7B
FNFFidelity National Financial, Inc.$52.6220.44%14.3B
AGOAssured Guaranty Ltd.$84.3034.71%4.8B
NMIHNMI Holdings, Inc.$29.7824.76%2.4B

Examples of Insurance Stocks

Insurance stocks can be a great addition to a diversified portfolio, as they provide a steady stream of income and can be less volatile than other types of stocks. However, it’s important to do your research and choose companies with a strong track record of financial stability and growth potential.

Below are some examples of Insurance stocks and brief overviews of how the companies operate.

  • Berkshire Hathaway (BRK.A) – Berkshire Hathaway, led by Warren Buffett, is a diversified holding company with a strong insurance division. The company’s insurance operations, including GEICO and General Re, provide a steady stream of income and have helped to fuel the company’s growth over the years. Berkshire Hathaway also has a strong portfolio of other businesses, including railroads, utilities, and retail companies.
  • Allstate (ALL) – Allstate is one of the largest personal lines property and casualty insurers in the United States, with a focus on auto, home, and life insurance. The company has a strong financial position and has been able to generate consistent earnings growth over the years. Allstate also has a significant presence in the growing market for insurance for ridesharing drivers.
  • Chubb (CB) – Chubb is a global property and casualty insurer that operates in more than 40 countries. The company’s strong financial position and diversified business operations make it a solid choice for investors looking for a stable insurance stock. Chubb has a strong reputation for underwriting and risk management, which has helped it to weather economic downturns.
  • Aflac (AFL) – Aflac is a leading provider of supplemental insurance, including cancer and accident insurance. The company’s strong brand and reputation for customer service have helped it to generate consistent earnings growth over the years. Aflac’s operations in Japan, which account for more than 75% of its total revenue, have been a key driver of the company’s growth.
  • Progressive (PGR) – Progressive is one of the largest auto insurers in the United States, with a focus on providing competitively priced insurance to safe drivers. The company’s strong financial position and consistent earnings growth have made it a popular choice among investors. Progressive has also been investing in technology to improve its customer experience and to develop new products.

About the Insurance Industry

The insurance industry provides financial protection to individuals, businesses, and organizations by offering a wide range of insurance products such as life, health, property, and casualty insurance. The industry is divided into two main segments: property and casualty (P&C) and life and health (L&H).

Property and casualty (P&C) insurance includes coverage for damage to or loss of property, such as homes, cars, and businesses. It also includes liability coverage for third-party claims resulting from accidents or injuries. Examples of P&C insurance products include auto, homeowners, and commercial insurance.

Life and health (L&H) insurance provides coverage for individuals in the event of death or illness. This can include term life insurance, which pays a benefit in the event of death during the policy term, and whole life insurance, which pays a benefit regardless of when death occurs. Health insurance covers medical expenses, including hospital stays, doctor visits, and prescription drugs.

The insurance industry is regulated at the state level, with each state having its own insurance commissioner who oversees the industry within that state. Regulations vary by state, but generally include licensing requirements for insurance companies and agents, financial solvency standards, and consumer protection laws.

The insurance industry is a significant contributor to the economy, with the U.S. insurance industry alone generated over $1 trillion in revenue in 2020. This industry also provides jobs for thousands of people, including insurance agents, underwriters, and claims adjusters.

The industry is facing a number of challenges, including low interest rates, which can make it difficult for insurance companies to earn a sufficient return on their investments, and increased competition from new players, such as insurtech companies. Additionally, the industry is facing increased pressure to adapt to changing consumer preferences and to meet the demands of a digital age.

Overall, the insurance industry plays a vital role in protecting individuals, businesses, and organizations from financial loss and provides a crucial service for the economy and society as a whole.

How Insurance Companies Make Money

Insurance companies make money by collecting premiums from customers and investing the money in various financial instruments. The company then uses the returns from these investments to pay out claims when they arise. The company also makes money by charging fees for certain services, such as administrative costs. In addition, many insurance companies also offer services such as financial advice or investment management.

Insurance companies also make money by charging interest on loans and other financial products. They may also charge fees for services such as underwriting, which is the process of assessing the risk of insuring a customer. Finally, insurance companies may also make money through reinsurance, which is when they transfer some of the risk of a policy to another insurer.

Different Types of Insurance Companies

There are several types of insurance companies that investors can invest in. These include life insurance companies, health insurance companies, property and casualty insurance companies, and reinsurance companies. Life insurance companies provide long-term protection against death or disability. Health insurance companies provide coverage for medical expenses. Property and casualty insurance companies provide coverage for property damage or liability claims. Reinsurance companies provide coverage for other insurance companies.

Investors should also be aware of the different types of insurance products offered by each type of insurance company. Life insurance companies typically offer term life insurance, whole life insurance, and universal life insurance. Health insurance companies offer health insurance plans such as HMOs, PPOs, and POS plans. Property and casualty insurance companies offer coverage for homeowners, renters, and auto insurance. Reinsurance companies offer coverage for other insurance companies, such as life, health, and property and casualty insurance.

Benefits of Investing in Insurance Stocks

There are many benefits to investing in insurance stocks. Firstly, since these companies are heavily regulated, they tend to be relatively stable investments. Secondly, many of these companies also offer dividend payments to shareholders, which can provide a steady income stream. In addition, insurance stocks may also be less prone to volatility than other types of stocks, making them attractive to long-term investors.

Furthermore, insurance stocks can provide investors with a hedge against economic downturns. Since insurance companies are often seen as a safe haven during times of economic uncertainty, their stocks can remain relatively stable even when other stocks are falling. This can help investors to protect their portfolios from losses during difficult economic times.

Understanding the Risks of Investing in Insurance Stocks

As with any other type of stock, there are certain risks associated with investing in insurance stocks. One of the main risks is that the company may be unable to pay out claims if it takes on too much risk or if its investments underperform. Additionally, insurance stocks may be subject to regulatory changes, which could negatively affect the stock price. Finally, the industry may be affected by changing economic conditions, which could also have an impact on the stock price.

It is also important to consider the potential for fraud or mismanagement when investing in insurance stocks. Companies may be subject to accounting irregularities or other forms of financial misconduct, which could lead to a decrease in the stock price. Additionally, insurance companies may be exposed to litigation risk, which could also have a negative impact on the stock price.

Factors to Consider Before Investing in Insurance Stocks

Investors must consider the fundamental strengths of business before investing in insurance stocks. The fundamental analysis must include industry-specific parameters, including new business premiums and annualized premium equivalent, in addition to the standard factors like returns, P/E ratios, valuation, and dividend yield.

Additionally, investors must also take an in-depth look at the types of insurance offered, portfolio and book value consisting of capital held for future claims, underwriting diversification, and combined ratios. These sector-specific features give a clearer picture of the future performance of insurance stocks.

Investors must also note that insurance stocks are one of the few stocks where past performance helps in predicting future performance. Therefore, technical analysis can also yield competent results while investing in insurance stocks.

Which Insurance Stocks Should I Buy?

A wide range of insurance stocks trades on the US stock exchanges. They belong to companies dealing with different segments of the insurance sector. We have shortlisted the best insurance stocks for investors to choose from.

Insurance stocks are on a sustained growth path due to solid distribution franchise, growth in the overall business, and due to the shift towards high-margin segments. During the times when the financial sector is highly volatile and risky, insurance stocks are suitable investments for stable returns and long-term growth.

If insurance stocks are something that interests you, you may also enjoy our list of pharma stocks. Find the stocks right for you, and get investing.

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