10 Best Performing Insurance Stocks to Buy Now

1. Berkshire Hathaway Inc. (NYSE:BRK-B)

1-Year Returns: 22.87%

No. of Hedge Fund Holders: 131

Berkshire Hathaway Inc. (NYSE:BRK-B) is a diversified global conglomerate holding corporation operating in the insurance industry. The company invests cash earned by insurance activities in a diverse range of subsidiaries, stock holdings, and securities from numerous sectors.

Berkshire Hathaway Inc. (NYSE:BRK-B) posted a significant growth in Q4 2024 earnings, driven by its insurance firms. The company’s cash holdings hit a record high, with a cash pile of over $334 billion, twice as much as from a year ago. The net income dropped significantly from a year ago, but Q4 operating profit was around $14.53 billion, surpassing expectations of $9.87 billion and marking a 71% year-over-year increase.

This growth was fueled by a 302% rise in insurance underwriting profits, which reached $3.41 billion, and a roughly 50% increase in insurance investment income, which totaled $4.09 billion. This growth was mainly driven by a 48% increase in insurance investment profits, amounting to $4.1 billion, driven by rising interest rates.

While we acknowledge the potential of BRK-B to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BRK-B but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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