In this article, we will take a look at the 10 Best Performing Insurance Stocks to Buy Now.
The Size of Insurance Market in the U.S.
The United States has the largest insurance market in the world. The combined value of America’s insurance market is around $1.7 trillion, as of 2025. The United States has some of the largest insurance companies by assets that influence the global insurance markets.
Life and health insurance remain one of the largest segments in the industry. According to a Fortune Business Insights report, the global health insurance market was valued at around $2.14 trillion in 2024. The market is expected to grow to $4.45 trillion in 2032 from an estimated $2.32 trillion in 2025, growing at a CAGR of 9.7%. North America dominated the health insurance market, with a market share of 62.15% in 2024.
According to a report by Deloitte, the property and casualty (P&C) insurance sector in the U.S. generated $9.3 billion in underwriting gain during the first quarter of 2024, a significant increase from an $8.5 billion loss in the first quarter of 2023. The industry also boosted its combined ratio to 94.2%, driven by increases in rates in the personal lines sector outweighing the cost of claims.
Losses from Natural Catastrophes
Insurers in the U.S. are cautious of the commercial lines segment as they expect to address growing loss trends across employment practices liability insurance. Social inflation is another concerning factor for insurers not only in the U.S., but for the rest of the world as well. According to WTW’s Natural Catastrophe Review, the global insured losses exceeded $140 billion in 2024, marking the fifth consecutive year insured damages surpassed $100 billion. The total economic damages were around $350 billion, reflecting the grave impact of climate-related risks.
Lately, the U.S. property insurance industry has been resetting its business models to cope with the losses incurred by the California wildfires. A new report from the UCLA Anderson Forecast indicates that wildfires in L.A. County may have caused total losses ranging between $95 billion and $164 billion, with insured losses estimated at $75 billion.
“Insurance companies have been very clear-eyed about climate change for a long time and the effect that has on their balance sheets,” Wharton professor of real estate and finance Benjamin Keys said on a radio show that airs on SiriusXM. Keys added, “And that will lead to higher premiums in risky areas. That’s what my research has borne out over these last few years. Insurers have sharply increased the ways in which they price disaster risk.”
Keys sees the insurance premiums to increase in the areas vulnerable to climate and expects them to be capitalized into house prices. He further added “But regardless, the position that homeowners will be in is one of substantially higher premiums.”
With that, let’s take a look at the 10 Best Performing Insurance Stocks to Buy Now.
An insurance agent at their desk consulting a customer about property & casualty insurance.
Our Methodology
We used Finviz to find companies in the insurance industry with a market capitalization of more than $5 billion. We selected the companies with returns of over 15% in the last 1 year, as of January 26. We have ranked the best performing insurance stocks to buy based on the number of hedge fund holders, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Performing Insurance Stocks to Buy Now
10. The Hartford Insurance Group, Inc. (NYSE:HIG)
1-Year Returns: 20.83%
No. of Hedge Fund Holders: 41
The Hartford Insurance Group, Inc. (NYSE:HIG) is a holding company that operates in the insurance business. The company operates through segments, including Business Insurance, Personal Insurance, Property and Casualty (P&C), Employee Benefits, and Hartford Funds. The company offers a wide range of products, including auto, home, life, and commercial insurance, serving both individual and business clients. With a strong presence in the U.S. market, Hartford is known for its financial stability and commitment to customer service.
The company is making strategic changes to improve its market position and operational efficiency. On February 6, The Hartford Insurance Group Inc. (NYSE:HIG) revealed a new brand identity, featuring a modernized stag logo, and expanded its philanthropic programs to reinforce its commitment to corporate social responsibility. In leadership developments, the company appointed Morris Tooker as the company’s president, adding Personal Lines to his existing responsibilities overseeing Small Commercial. These changes indicate the company’s ongoing developments to enhance its brand presence, leadership team, and governance structure.
On February 3, Piper Sandler analyst Paul Newsome raised the price target of HIG shares from $127 to $130, maintaining an Overweight rating on the shares. The Hartford Insurance Group Inc. (NYSE:HIG) posted strong top-line growth in Commercial Lines during Q4 2024, up by 9% year-over-year. The company’s Personal Lines experienced remarkable development, with a 9.3-point improvement in the underlying combined ratio for the quarter. The company’s core earnings in Q4 2024 were around $865 million and $3.1 billion for the year, reflecting an 11% increase. The company’s net income for the full year increased 24% to $3.1 billion, driven by solid premium growth in its Property & Casualty (P&C) segment and higher net investment income.
9. Lincoln National Corporation (NYSE:LNC)
1-Year Returns: 40.76%
No. of Hedge Fund Holders: 41
Lincoln National Corporation (NYSE:LNC) is a Fortune 200 holding company that operates multiple insurance and retirement businesses through subsidiary companies. The company has four segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.
Lincoln National Corporation had a remarkable 2024 as it achieved its highest full-year adjusted operating income in three years, indicating strong financial performance. The company improved its RBC ratio to over 430% in 2024, adding to its financial flexibility. All the major businesses delivered remarkable results, with the Group protection business delivering a record Q4 with earnings more than doubling year-over-year. Annuities business also posted robust earnings growth and its highest full-year sales in five years. Retirement Plan Services reported a 10th consecutive year of positive net flows, with full-year deposit growth of 25%.
Following strong quarterly and full-year results, analysts raised their price target on LNC shares. On February 19, Well Fargo analyst Elyse Greenspan increased LNC’s price target from $28 to $36 per share, keeping an Equal Weight rating on the shares. Morgan Stanley analyst Nigel Dally also raised the price target from $36 to $39 per share, maintaining an Equal Weight rating.
8. Unum Group (NYSE:UNM)
1-Year Returns: 57.78%
No. of Hedge Fund Holders: 43
Unum Group (NYSE:UNM) is an American insurance provider of workplace benefits and services. The company offers financial protection benefits in the U.S. and the U.K. Unum’s products include disability, life, accident, critical illness, dental and vision, and other related services.
Unum Group (NYSE:UNM) missed the analysts’ earnings estimates in Q4 2024, but managed to report 10% earnings growth for the full year, surpassing initial expectations of 7% to 9%. The company achieved strong sales in the U.S., with approximately a 20% increase in Q4, marking it as the largest sales quarter of the year. The company recorded a ROE of more than 20% in 2024, reflecting strong financial performance. After repurchasing almost $1 billion of shares in 2024, the company has announced to repurchase another $1 billion of its common stock during 2025 beginning on April 1.
The company has also raised its dividend by 15% and expects to generate between $1.3 billion and $1.6 billion of FCF in 2025, indicating the continuous progress and strong financial flexibility. On February 7, Truist raised UNM’s price target from $75 to $90, keeping a Buy rating on the shares. Even though UNM missed Q4 earnings, Truist is positive on the company’s sustained topline growth and profitability along with its excess capital generation.
7. Willis Towers Watson Public Limited Company (NASDAQ:WTW)
1-Year Returns: 22.36%
No. of Hedge Fund Holders: 48
Willis Towers Watson Public Limited Company (NASDAQ:WTW) is a London-based insurance company that offers commercial insurance, brokerage services, and strategic risk investment solutions. WTW recently launched Expert, an AI-powered assistant designed to support midsize U.S. businesses in managing HR, compensation, and benefits tasks. The tool helps with research, regulatory guidance, writing, and secure document searches. Expert utilizes WTW’s extensive expertise and database of HR and benefits regulations.
The company is focused on data-driven solutions to support risk and capital management. In October 2024, WTW released a machine-led solution designed to transform insurance practices. This solution assists insurers and reinsurers in improving accuracy and efficiency in property and casualty reserving.
As WTW continues to transform its operations, it is also performing well financially. During Q4 2024, the company achieved 5% organic revenue growth, with an adjusted operating margin of 36.1%, indicating strong financial performance. The company’s Transformation program delivered $473 million in cumulative savings, improving operational efficiency. In addition, the sale of TRANZACT for $632 million will strengthen growth rates, operating margins, and FCF in 2025.
Willis Towers Watson Public Limited Company (NASDAQ:WTW) ended 2024 with an operating cash flow of $1.5 billion and FCF of $1.4 billion. WTW currently offers a quarterly dividend of $0.88 per share and has a dividend yield of 1.09%, as of February 27.
6. MetLife, Inc. (NYSE:MET)
1-Year Returns: 21.03%
No. of Hedge Fund Holders: 54
MetLife, Inc. (NYSE:MET) is the largest U.S. life insurer and has a huge retirement solutions business. The company has a strong presence in more than 40 markets around the world, with leading positions in the US, Japan, Latin America, Asia, Europe, the Middle East, and Africa. It offers a wide range of health insurance products, including accident and health insurance, disability insurance, and critical illness insurance.
MetLife, Inc. (NYSE:MET) recently announced its five-year growth strategy, New Frontier. The life insurer is aiming for double-digit growth in adjusted earnings per share and a 15-17% adjusted return on equity. The company also plans to minimize its expenses and turn over nearly $25 billion in FCF. The growth strategy focuses on expansion in high-growth international markets by leveraging its strong position in Latin America and Asia. MetLife will also target emerging regions through new distribution methods and product and channel diversification.
On February 19, Wells Fargo analyst Elyse Greenspan raised the price target on MET from $92 to $97, keeping an Overweight rating on the shares. The company’s solid 2024 results and history of strong returns on equity reflect its ability to execute growth strategies across different markets. With the latest growth strategy on the line, MET seems a promising insurance stock to buy now.
5. Aon plc (NYSE:AON)
1-Year Returns: 26.77%
No. of Hedge Fund Holders: 59
Aon plc (NYSE:AON) is a professional services company that offers risk management, insurance brokerage, and human capital consulting. The company provides advice and solutions through four principal products and services: commercial risk solutions, reinsurance solutions, health solutions, and wealth solutions.
On February 5, Keefe, Bruyette & Woods analyst Meyer Shields increased the price target on AON from $411 to $414, rating the stock as an Outperform. The price upgrade follows Aon plc’s Q4 2024 quarterly results as the company achieved a 6% organic revenue growth and a 17% increase in total revenue in 2024 compared to 2023. The increase in revenue indicates strong growth fundamentals. Aon’s solid prospects for organic growth position it well for potential multiple expansion.
Whereas, its consistent performance in managing expenses adds to its overall ability to improve earnings. Aon plc (NYSE:AON) recorded a 17% growth in operating income in 2024 and a 10% increase in adjusted EPS from a year ago, reflecting effective cost management and operational efficiency. Aon maintains its dominant market position and the dividend payments for 46 consecutive years are evidence of its strong financial stability.
4. Marsh & McLennan Companies, Inc. (NYSE:MMC)
1-Year Returns: 15.97%
No. of Hedge Fund Holders: 69
Marsh & McLennan Companies, Inc. (NYSE:MMC) is a professional services company that provides insurance brokerage and related services. The company serves in areas of risk, strategy, and people. The company’s Risk and Insurance Services segment includes risk management activities as well as insurance and reinsurance broking and services.
Marsh & McLennan Companies, Inc. (NYSE:MMC) is expanding its market share with acquisitions. In late 2024, the company purchased McGriff Insurance Services for $7.75 billion. On February 18, the company announced that it is set to acquire SECOR Asset Management, a global provider of bespoke strategic and portfolio solutions. SECOR offers services to institutional investors, including pension funds, insurance companies, endowments and family offices. It offers end-to-end solutions such as investment advisory and implementation, fiduciary management and asset liability management. The McGriff acquisition added $1.3 billion in revenues in 2024 and an estimated $400 million to $500 million in EBITDA to MMC’s MMA segment. SECOR’s acquisition will be another addition to MMC’s portfolio, further diversifying its revenue stream.
On February 6, Raymond James analyst C. Gregory Peters upgraded the price target on MMC shares from $240 to $250, keeping an Outperform rating on the shares. The analyst is optimistic on Marsh & McLennan’s ability to achieve higher organic growth and adjusted operating income margin expansion.
3. Arthur J. Gallagher & Co. (NYSE:AJG)
1-Year Returns: 36.38%
No. of Hedge Fund Holders: 77
Arthur J. Gallagher & Co. (NYSE:AJG) is a global insurance brokerage, risk management and consulting services company. The insurance company operates through three segments, including brokerage, risk management, and corporate.
Arthur J. Gallagher & Co. is expanding its network in Brazil with the latest acquisition of Case Group. Case is an employee and health benefits brokerage and consulting firm serving clients throughout Brazil. This will add to the company’s revenue stream and diversify its product portfolio.
AJG posted strong quarterly results in Q4 2024, with adjusted EPS of $2.51 exceeding estimates of $2.06 per share by 22.3%. Revenue was $2.69 billion for the quarter, up by 12% year-over-year.
Arthur J. Gallagher & Co. (NYSE:AJG) continues to improve its business through expansion. During Q4 2024, the company completed 20 new tuck-in mergers, representing around $200 million of estimated annualized revenue. AJG has signed the agreement to acquire AssuredPartners, which is expected to close in the first quarter of 2025. The acquisition of AssuredPartners is expected to expand AJG’s commercial market focus and enhance its M&A reach, bringing more revenue opportunities.
2. The Progressive Corporation (NYSE:PGR)
1-Year Returns: 41.28%
No. of Hedge Fund Holders: 100
The Progressive Corporation (NYSE:PGR) is the second-largest auto insurer in the U.S., offering a wide range of specialty property-casualty insurance products.
On February 25, Morgan Stanley analyst Bob Huang increased its price target on PGR shares from $307 to $317, keeping an Overweight rating on the stock. This is the second upgrade on PGR from Huang within the last month. The analyst is bullish on PGR shares, indicating a stronger underwriting environment and improving margins as new policy strain eases. Huang now expects the company to report EPS of $16.60 in 2025, up from previous forecast of $14.81. Here is what the analyst at Morgan Stanley said:
“Post January results and 4Q24 industry earnings, Progressive stood out above the rest in terms of growth and profitability. We now see a much more durable underwriting environment that supports a higher EPS growth trajectory.”
The Progressive Corporation (NYSE:PGR) added a record 4.2 million new personal auto policies in 2024. As these policies mature, Huang expects them to positively impact profitability in 2025.
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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