10 Best Insurance Stocks to Buy According to Hedge Funds

3. Arthur J. Gallagher & Co. (NYSE:AJG)

No. of Hedge Fund Holders: 77

Arthur J. Gallagher & Co. (NYSE:AJG) is a leading global insurance brokerage and risk management firm. It offers brokerage and consulting services to entities of all types, including commercial, public sector organizations, nonprofits, insurance companies, insurance capital providers, and others. AJG has grown into one of the largest insurance providers globally, serving in more than 130 countries.

Recently, Truist analyst Mark Huges upgraded the price target on AJG shares from $290 to $310 per share, maintaining a Hold rating. The analyst sees higher peer valuations in AJG. However, Huges has cut the company’s 2025 earnings estimate to $10.65, which is still slightly higher than 2024’s actual earnings of $10.09 per share. Similarly, Keefe, Bruyette & Woods analyst Meyer Shields increased the price target of AJG from $308 to $314, keeping a Market Perform rating on the stock.

Andvari Associates stated the following regarding Arthur J. Gallagher & Co. (NYSE:AJG) in its Q3 2024 investor letter:

“Arthur J. Gallagher & Co. (NYSE:AJG) and Rollins are two other serial acquirers in Andvari’s client portfolios. Both are some of the largest and best businesses in their respective industries. AJG is a leading property and casualty insurance and reinsurance broker. Rollins is home to many of the top brands in the pest service industry in North America.”