10 Best Insurance Stocks for the Long Term

8. Arch Capital Group Ltd. (NASDAQ:ACGL)

Number of Hedge Fund Holders: 33

10-Year Revenue Growth Rate: 15.78%

Arch Capital Group Ltd. (NASDAQ:ACGL) ranks 8th on our list of the best insurance stocks to buy for the long term. The company is a leading provider of insurance, reinsurance, and mortgage insurance solutions. In the 12 months ending September 30, 2024, the company wrote $21 billion in gross premiums, of which its reinsurance line made up 53% and its insurance line made up 40% of the premiums written. Gross premiums for its re-insurance line grew the most rapidly, especially in the property and specialty insurance lines, contributing to the overall success of the firm.

The company logged a 256% growth in its net income from 2019 to the 12 months ending September 30, 2024, going from $1.6 billion to $5.7 billion in approximately five years. In addition to that, the company has grown its book value at a compound annual growth rate (CAGR) of 15.8% between 2001 and September 2024, an impressive feat for the overall growth trajectory of the firm. Similarly, Arch Capital Group Ltd. (NASDAQ:ACGL) has grown its revenue by nearly 16% over the past 10 years, explaining why 33 hedge funds were bullish on the stock at the close of Q3 2024.

Arch Capital Group Ltd. (NASDAQ:ACGL) boasts a solid growth opportunity given its sound financial performance and growing reinsurance business, especially across the property, casualty, and specialty insurance lines, segments expected to perform well in 2025.