Markets

Insider Trading

Hedge Funds

Retirement

Opinion

10 Best Property & Casualty Insurance Stocks to Buy

In this article, we will be taking a look at the 10 best property & casualty insurance stocks to buy. To see more of these stocks, you can take a look at the 5 Best Property & Casualty Insurance Stocks to Buy.

The past few years have been challenging for most industries, with a global pandemic on the loose followed by rising inflation and geopolitical tensions. Companies that have managed to adapt to the rapidly transforming economic environment have managed to hold on, while many others have struggled and been brought to the point of bankruptcy. Insurance companies have not been spared, being faced with macroeconomic and geopolitical issues. However, the industry has managed to remain strong through 2022 and well into 2023, according to several outlook reports on the global insurance industry for 2023.

A Bright Future for the Insurance Industry

According to one such outlook report published by Deloitte in June, insurance companies that have managed to transition during the pandemic to be able to host remote workforces and virtual customer and distributor engagement seem to be well-positioned to profit in the face of the many challenges they are facing. It has been noted in the report that reliance on advanced technology and digital infrastructure will take insurance companies a long way in meeting their goals and turning a profit. However, they must also retain their creativity in adapting to the new environment while pledging their support to sustainability priorities like climate risk, diversity and inclusion, and social equity. In a market where customers and consumers are easily swayed by socioeconomic issues, most companies are beginning to have to deal with more socially aware and concerned customers. Hence, by focusing more on environmental, social, and governance (ESG) priorities, insurance companies can continue to retain their profitability in today’s uncertain market.

An example of ESG priorities having an impact on the insurance industry comes with the London insurance market. According to the Deloitte report, this market could double in size by covering the global transition to green energy for policyholders who want to achieve net zero carbon emissions. According to the London & International Insurance Brokers’ Association (LIIBA), by 2023, buyers around the world are expected to spend about $125 billion in insurance-related transition costs. This figure alone speaks volumes about the vast potential within the ESG space, which insurance companies such as Berkshire Hathaway Inc. (NYSE:BRK-B), Metlife, Inc. (NYSE:MET), and Prudential Financial, Inc. (NYSE:PRU) can harness and utilize for their growth.

The Property and Casualty Insurance Market

According to another outlook report published by McKinsey & Company in March, personal property and casualty insurance has seen an annual growth of 3% between 2019 and 2022. This growth was witnessed despite the sector slowing down during the pandemic. According to the report, in 2022, the insurance industry’s gross written premium (GWP) crossed the $6.5 trillion mark, and about one-third of its total revenues were derived from property and casualty insurance. However, a quick study of this sector within the broader insurance industry shows that personal property and casualty insurance is restricted to a local level, requiring insurance companies within this space to maintain a strong presence within specific regions.

According to the McKinsey report, the market for property and casualty insurance is concentrated and restricted to the top five insurers operating in the US. These companies thus claim 56% and 61% of the five-year growth and pre-tax income, respectively, while they make up only about 48% of the total market share within the property and casualty insurance space. However, this concentration is not limited to the US alone. The report shows that this trend is replicated across most geographical areas, including Italy, France, Japan, and many other countries.

While this market concentration remains the reality for most regions when it comes to their personal property and casualty insurance sectors, it cannot be denied that this sector remains a strong and resilient part of their economies to date. Its continued growth and profitability have led to many investors continuing to pour investments into companies operating within this space. As such, we have compiled a list of the best property and casualty insurance stocks to buy today.

Aigars Reinholds/Shutterstock.com

Let’s now take a look at the 10 best property and casualty insurance stocks to buy.

Our Methodology

We have selected 10 of the most popular property and casualty insurance stocks among elite hedge funds. To find hedge fund popularity we used Insider Monkey’s hedge fund data for the first quarter of 2023 when 943 hedge funds were tracked. We have ranked these stocks based on the number of hedge funds holding stakes in them, from the lowest to the highest number. The information on average price targets and upside potential was sourced from TipRanks.

Best Property & Casualty Insurance Stocks to Buy

10. Loews Corporation (NYSE:L)

Number of Hedge Fund Holders: 18

Loews Corporation (NYSE:L) is a property and casualty insurance company based in New York. The company offers specialty insurance products like management and professional liability, among more.

In the first quarter of 2023, Loews Corporation (NYSE:L) generated revenues of $3.78 billion, a growth of 11.2% year-over-year. The company’s EPS was $1.61. Loews Corporation (NYSE:L) also saw its book value per share rise from $60.81 to $63.41 between December 2022 and March 2023, according to the company’s press release this May.

Diamond Hill Capital was the largest shareholder in the company at the end of the first quarter of 2023, holding 701,002 shares. In total, 18 hedge funds were long the stock, with a total stake value of $98.7 million.

Loews Corporation (NYSE:L), like Berkshire Hathaway Inc. (NYSE:BRK-B), Metlife, Inc. (NYSE:MET), and Prudential Financial, Inc. (NYSE:PRU), is an insurance stock many hedge funds are piling into today.

9. American Financial Group, Inc. (NYSE:AFG)

Number of Hedge Fund Holders: 19

American Financial Group, Inc. (NYSE:AFG) is an insurance holding company providing specialty property and casualty insurance products. It is based in Cincinnati, Ohio.

An Overweight rating was reiterated on American Financial Group, Inc. (NYSE:AFG) shares on April 4 by Paul Newsome, an analyst at Piper Sandler.

Analysts have placed an average price target of $162 on American Financial Group, Inc. (NYSE:AFG) shares, which were trading at $113.67 on May 25. This gives the stock an upside potential of 42.8%.

There were 19 hedge funds long American Financial Group, Inc. (NYSE:AFG) in the first quarter, with a total stake value of $133 million.

Investment management company Headwaters Capital mentioned the company in its second-quarter 2022 investor letter. Here’s what the firm said:

American Financial Group, Inc. (NYSE:AFG) returned +1% (inclusive of an $8 special dividend paid during the quarter). Underwriting returns continue to be strong across almost all of the company’s specialty lines of business. Returns from the company’s investment portfolio, specifically investments in real estate funds, have also been very strong. Going forward, AFG’s investment portfolio should benefit from higher interest rates as it has strategically repositioned its fixed income portfolio into shorter duration assets over the last year.”

8. The Hanover Insurance Group, Inc. (NYSE:THG)

Number of Hedge Fund Holders: 21

The Hanover Insurance Group, Inc. (NYSE:THG) is a provider of property and casualty insurance products and services. It is based in Worcester, Massachusetts.

Grace Carter, an analyst at Bank of America, holds a Neutral rating on The Hanover Insurance Group, Inc. (NYSE:THG) shares as of May 18.

The Hanover Insurance Group, Inc. (NYSE:THG) generated revenues of $1.42 billion in the first quarter of 2023, up 8.32% year-over-year. The company’s stock is up 26.1% year-to-date, as of May 28.

Markel Gayner Asset Management was the largest shareholder in the company at the end of the first quarter, holding 138,000 shares. A total of 21 hedge funds were long The Hanover Insurance Group, Inc. (NYSE:THG), with a total stake value of $65.6 million.

7. Markel Corporation (NYSE:MKL)

Number of Hedge Fund Holders: 23

Markel Corporation (NYSE:MKL) is a diverse financial holding company based in Glen Allen, Virginia. It engages in marketing and underwriting specialty insurance products, including property and casualty insurance products.

With one Buy rating placed on Markel Corporation (NYSE:MKL), analysts on Wall Street see the stock as a Moderate Buy. They have placed an average price target of $1,600 on the shares, which were trading at $1,316.18 on May 25. This gives Markel Corporation (NYSE:MKL) an upside potential of 21.46%.

Our hedge fund data for the first quarter shows 23 hedge funds long Markel Corporation (NYSE:MKL). Their total stake value was $1.1 billion.

Investment management firm, Davis Advisers, mentioned the company in its 2022 annual investor letter. Here’s what the firm said:

“As the relative risk/reward trade-off has shifted back toward our bank holdings, the fund has reallocated some capital away from P&C insurance, though it still remains a meaningful position at 17%. A closer look at one of those holdings, Markel Corporation (NYSE:MKL) Corporation, illustrates why. Referred to by some as a “mini-Berkshire Hathaway,” Markel allocates its capital between writing P&C insurance, investing in publicly traded stocks, purchasing controlling interest in private companies and repurchasing its own stock. Such flexibility conveys an advantage over those who limit themselves to one or two of those options. It also complicates the analysis of the company by investors, and despite its $18 billion market capitalization, Markel is covered by relatively few brokerage analysts. Insurance companies in general earn two streams of profits: the profit (loss) from underwriting clients’ risks, and the investment income generated from assets financed with the float provided by their customers (and their own capital). Markel has a demonstrated record as a highly competent underwriter, illustrated by management’s targeted underwriting margin of 10% in the medium-term, an outcome that would translate into an attractive mid-teens return on equity if it were conventionally structured.

But Markel is not conventional: It carries far more equity capital than its insurance operations need on a standalone basis, and that excess is allocated to stocks and owned private companies. Markel is projected to earn $1.25 billion of net income in 20236, but this metric only captures the dividends received on its $8 billion stock portfolio. The underlying companies in that portfolio—which include Berkshire Hathaway, Deere & Co., Home Depot and Alphabet, among others—earn perhaps $350 million more than they pay out in dividends.7 Moreover, these companies are reinvesting much of that into their own businesses at attractive rates of return, which over time will materialize into stock price appreciation. Adjusting Markel’s reported earnings for these retained earnings would decrease its 2023 valuation multiple from 14 times to 11 times. Furthermore, the contribution to this adjusted measure of earnings from these stocks and from the approximate $2 billion invested in private companies is roughly 45% of the total. These are non-financial businesses that generally command higher valuation multiples than typical financial companies.…” (Click here to read the full text)

6. RenaissanceRe Holdings Ltd. (NYSE:RNR)

Number of Hedge Fund Holders: 33

RenaissanceRe Holdings Ltd. (NYSE:RNR) is a provider of reinsurance and insurance products based in Pembroke, Bermuda. It operates through its Property, and Casualty and Specialty segments.

Analysts at Jefferies upgraded shares of RenaissanceRe Holdings Ltd. (NYSE:RNR) from Hold to Buy on May 25.

There are three Buy ratings and two Hold ratings placed on RenaissanceRe Holdings Ltd. (NYSE:RNR) shares, making the stock a Moderate Buy. In the fiscal first quarter of 2023, the company generated revenues of $23.33 billion. This represented a growth of 24.38% year-over-year.

Polar Capital was the largest shareholder in the company at the end of the first quarter, holding 1.02 million shares. In total, 33 hedge funds were long the stock, with a total stake value of $669 million.

TimesSquare Capital Management, an equity investment management company, mentioned RenaissanceRe Holdings Ltd. (NYSE:RNR) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Turning to areas of strength, there were contributions from the Financials sector this quarter. Leading that charge was the 31% gain from the reinsurance provider RenaissanceRe Holdings Ltd. (NYSE:RNR). RenRe’s level of gross premiums written was higher than anticipated, though more importantly the company expects that underwriting income, investment income, and fee income all are poised to increase materials in 2023.”

RenaissanceRe Holdings Ltd. (NYSE:RNR), like Berkshire Hathaway Inc. (NYSE:BRK-B), Metlife, Inc. (NYSE:MET), and Prudential Financial, Inc. (NYSE:PRU), is a highly profitable insurance company with immense potential.

Click to continue reading and see the 5 Best Property & Casualty Insurance Stocks to Buy.

Suggested articles:

Disclosure: None. 10 Best Property & Casualty Insurance Stocks to Buy is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…