In this article, we will discuss the 12 Best Property & Casualty Insurance Stocks to Buy Now.
The property and casualty (P&C) insurance sector is a pivotal part of the global financial landscape, providing essential coverage against a wide array of risks that both individuals and businesses face daily. These risks can range from property damage and natural disasters to accidents and liabilities, and the need for reliable insurance coverage has made the P&C sector one of the most significant in the financial markets.
Technological Advancements and Digital Transformation:
The shift toward digitalization has become a hallmark of the P&C insurance sector. Insurers are increasingly relying on advanced technologies like artificial intelligence (AI), machine learning, and big data analytics to improve underwriting, pricing, and claims processing. Leveraging these technologies, insurers can better predict risks, optimize pricing models, and streamline claims handling processes, all while improving the customer experience. According to a report from Reuters, AI has been valuable in insurance pricing and underwriting, enabling insurers to analyze large volumes of data quickly and make more accurate decisions, although success has been more limited when AI entirely takes over underwriting.
Impact of Climate Change:
While the technology-driven transformation is a key trend, another significant shift within the P&C insurance sector is the growing focus on environmental, social, and governance (ESG) factors. According to a report by PwC, insurers are increasingly under pressure to assess and address the environmental impact of the risks they insure. This includes evaluating the implications of climate change on their portfolios and developing sustainable insurance products that align with global efforts to combat environmental degradation.
Social issues such as cybersecurity threats and the growing need for cyber insurance have prompted P&C insurers to develop new policies and coverage options to protect businesses and individuals from the increasing risks associated with digital exposure. According to a report by the National Association of Insurance Commissioners (NAIC), the number of cyber insurance policies in force increased by 11.7% in 2023, reaching almost 4.4 million policies. This growth reflects a growing recognition of the need for coverage against cyber risks.
Competitive Landscape:
The competitive landscape within the P&C insurance market is also evolving. As the demand for insurance products grows, more companies are entering the market, while established players are expanding their offerings and geographic reach. In December 2024, Florida welcomed eight new home insurance companies, aiming to stabilize the property insurance market and provide homeowners with more choices. Insurers are seeking to gain a competitive edge through mergers, acquisitions, and strategic partnerships that enable them to scale operations, enter new markets, and diversify their portfolios. For instance, Swiss insurer Baloise announced plans to increase its return on equity to 12-15% and generate over $2.3 billion in cash between 2024 and 2027, following a strategic refocusing.
For investors, the property and casualty insurance sector presents a range of opportunities, particularly as the industry is characterized by strong demand for essential services, as well as solid fundamentals in many of the top companies. Some of the biggest players in the sector have demonstrated remarkable financial performance, boasting robust growth in both premium volumes and profits despite challenges such as inflation, natural disasters, and increased regulatory scrutiny. Given this, we will take a look at some of the best insurance stocks.
Our Methodology
For this list, we examined the holdings of the Invesco KBW Property & Casualty Insurance ETF (KBWP), which tracks companies in the property and casualty insurance sector. We then consulted Insider Monkey’s database of hedge fund holdings as of Q3 2024 to identify which of the ETF’s holdings had the highest number of hedge fund investors. We ranked the top 12 companies based on the number of hedge funds holding stakes in them, providing a list of firms with significant institutional interest in the property and casualty insurance industry.
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12. Assurant Inc. (NYSE:AIZ)
Number of Hedge Fund Holders: 27
Assurant Inc. (NYSE:AIZ) is a global leader in providing comprehensive risk management solutions, specializing in auto, lifestyle, and housing protection sectors. With a presence in 21 countries, the company supports over 300 million customers worldwide by delivering insurance, protection products, and innovative services that enhance customer loyalty in an increasingly connected world.
In 2024, the company expanded its Device Lifecycle Solutions, inaugurating a state-of-the-art Innovation and Device Care Center to process and refurbish connected devices, underscoring its commitment to the circular economy. Assurant Inc. (NYSE:AIZ) has also been recognized for its innovation and ethical practices, earning spots on Fortune’s list of America’s Most Innovative Companies and being named one of America’s Most JUST Companies.
Assurant Inc. (NYSE:AIZ) delivered a strong financial performance in 2024. Revenue reached $11.42 billion, a 7% increase from 2023, while net income totaled $760.2 million, an 18% increase from the previous year. The company’s adjusted earnings per diluted share for 2024 also saw a solid increase of 7%, reaching $16.64. Additionally, Assurant Inc. (NYSE:AIZ) adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2024 increased by 5%, reaching $1.32 billion, reflecting the continued strength of its operations and cost management. AIZ is one of the best insurance stocks on our list.
11. RenaissanceRe Holdings Ltd. (NYSE:RNR)
Number of Hedge Fund Holders: 29
RenaissanceRe Holdings Ltd. (NYSE:RNR) is a leading global property and casualty reinsurer, with over 30 years of market leadership in providing comprehensive risk solutions to clients. The company combines data, technology, and deep expertise to deliver risk transfer solutions and substantial capacity through its owned and managed partner balance sheets.
RenaissanceRe Holdings Ltd. (NYSE:RNR) reported strong financial results for 2024, with a net income of $1.8 billion and an operating income of $2.2 billion. Key drivers of profit included underwriting income of $1.6 billion, net investment income of $1.7 billion, and fee income of $326.8 million. Despite a challenging fourth quarter with a $198.5 million net loss, due to mark-to-market losses and Hurricane Milton’s impact, RenaissanceRe Holdings Ltd. (NYSE:RNR) remained strong overall. The company repurchased $677.6 million in shares during 2024, including $462.3 million in Q4 2024, highlighting its commitment to capital management even during volatile times.
Analyst Meyer Shields from Keefe, Bruyette & Woods has maintained a Buy rating for RenaissanceRe Holdings Ltd. (NYSE:RNR) with a price target of $294, suggesting an upside of 25.10% from its current price. The company currently has 29 hedge fund holders, according to Insider Monkey’s Q3 2024 database.
10. Arch Capital Group Ltd. (NASDAQ:ACGL)
Number of Hedge Fund Holders: 33
Arch Capital Group Ltd. (NASDAQ:ACGL) is a specialty insurer, reinsurer, and mortgage insurance provider. With over 7,000 employees and operations in more than 60 offices worldwide, the company focuses on disciplined underwriting, agility, and expertise to deliver innovative risk solutions across diverse markets.
Arch Capital Group Ltd. (NASDAQ:ACGL) reported a net income of $925 million in Q4 2024, with earnings per share (EPS) of $2.42. Operating income stood at $866 million ($2.26 per share). Despite facing $393 million in catastrophe losses from Hurricanes Milton and Helene, the company remained profitable. Arch Capital Group Ltd. (NASDAQ:ACGL) continued to deliver value to shareholders, repurchasing $24 million in shares and issuing a special dividend of $1.9 billion ($5.00 per share) in December 2024.
In addition to its strong financial results, Arch Capital Group Ltd. (NASDAQ:ACGL) has made several strategic developments. Recently, the company promoted David Gansberg to President of the Insurance Group and Maamoun Rajeh to President of the Mortgage and Reinsurance groups, bolstering its leadership team to drive future growth and operational success. Furthermore, Arch Capital Group Ltd. (NASDAQ:ACGL)’s insurance segment expanded with the completion of the U.S. MidCorp and Entertainment businesses acquisition from Allianz in August 2024.
JMP Securities recently reaffirmed a price target of $125 with a “Market Outperform” rating, citing the company’s extensive global distribution network and underwriting expertise as key strengths.
9. AXIS Capital Holdings Limited (NYSE:AXS)
Number of Hedge Fund Holders: 34
AXIS Capital Holdings Limited (NYSE:AXS) is a global provider of specialty insurance and reinsurance products. The company operates through two main segments: Insurance and Reinsurance, offering a broad range of risk management solutions to businesses worldwide.
AXIS Capital Holdings Limited (NYSE:AXS) delivered robust financial results for both Q4 and the full year of 2024, reaffirming its position as a strong player in the global specialty insurance and reinsurance markets. The company posted a Q4 net income of $286 million, or $3.38 per diluted common share, and operating income of $252 million, or $2.97 per share. For the full year, AXIS Capital Holdings Limited (NYSE:AXS) reported a significant increase in profitability, with net income of $1.1 billion, a marked improvement from the $346 million net income available to common shareholders, or $4.02 per diluted common share, in 2023.
In a recent development, AXIS Capital Holdings Limited (NYSE:AXS) has promoted Steve Cucciniello to the role of Head of Primary Casualty, effective February 6, 2025. Cucciniello, who brings over three decades of industry experience, joined the company in 2014 and most recently served as Senior Vice President of Primary Casualty. In his new position, Cucciniello will lead the Primary Casualty team and focus on advancing the company’s strategy in this area. This leadership change highlights AXIS Capital Holdings Limited (NYSE:AXS)’s commitment to growing its casualty business with experienced talent.
AXIS Capital Holdings Limited (NYSE:AXS) currently has 29 hedge fund holders, according to Insider Monkey’s Q3 2024 database.
8. Everest Group Ltd. (NYSE:EG)
Number of Hedge Fund Holders: 34
Everest Group Ltd. (NYSE:EG) is a global insurance and reinsurance company that offers a broad range of property and casualty (P&C) insurance solutions. The company provides comprehensive coverage for both personal and commercial lines, including risks related to property damage, liability, and other specialized needs. With a strong focus on delivering tailored solutions, the company serves a diverse clientele across various industries, helping businesses manage their exposure to risk.
Everest Group Ltd. (NYSE:EG) reported a challenging fourth quarter for 2024, with a net loss of $593 million, primarily due to reserve strengthening in its US casualty lines. For the full year, however, the company demonstrated resilience, achieving $1.3 billion in operating income, a 9% return on equity, and a strong operating cash flow of $5 billion. Despite facing significant losses from the California wildfires, Everest Group Ltd. (NYSE:EG)’s gross written premiums grew 7.2% year-over-year to $4.7 billion in Q4. While the company took substantial actions to strengthen its reserves, including a $1.7 billion reserve addition for the year, it remains optimistic, with a solid 9.2% total shareholder return for 2024.
Alex Scott from Barclays maintains a Buy rating on the stock, with the price target adjusted to $470 from $461.
7. The Hartford Insurance Group Inc. (NYSE:HIG)
Number of Hedge Fund Holders: 37
The Hartford Insurance Group Inc. (NYSE:HIG) 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, the company is known for its financial stability and commitment to customer service.
The Hartford Insurance Group Inc. (NYSE:HIG) reported a Q4 net income of $848 million, or $2.88 per diluted share, marking an 11% increase from the previous year. For the full year, net income rose 24% to $3.1 billion, or $10.35 per diluted share, driven by solid premium growth in its Property & Casualty (P&C) segment and higher net investment income. Core earnings for 2024 were $865 million in Q4 and $3.1 billion for the year, reflecting an 11% increase.
The Hartford Insurance Group Inc. (NYSE:HIG) has recently undertaken several strategic initiatives to enhance its market position and operational efficiency. On February 6, 2025, the company unveiled a refreshed brand identity, featuring a modernized stag logo, and expanded its philanthropic programs to reinforce its commitment to corporate social responsibility.
In leadership developments, The Hartford Insurance Group Inc. (NYSE:HIG) appointed Morriss Tooker as the company’s president, adding Personal Lines to his existing responsibilities overseeing Small Commercial. These initiatives reflect the company’s ongoing efforts to strengthen its brand presence, leadership team, and governance structure.
37 hedge funds in the Insider Monkey Q3 2024 Hedge database held shares of The Hartford Insurance Group Inc. (NYSE:HIG).
6. The Travelers Companies Inc. (NYSE:TRV)
Number of Hedge Fund Holders: 37
The Travelers Companies Inc. (NYSE:TRV) is one of the largest insurance providers in the United States, offering a wide range of property and casualty insurance products. The company specializes in providing coverage for personal, business, and specialty needs. Its products include home, auto, and life insurance, as well as commercial lines for businesses of all sizes, including workers’ compensation, liability, and property insurance.
The Travelers Companies Inc. (NYSE:TRV) reported impressive fourth-quarter and full-year results for 2024, with a record core income of about $2.1 billion in Q4, a 30% increase year-over-year, and a full-year core income of $5 billion, up 64%. Earnings per share (EPS) for Q4 were $9.15, reflecting a 31% rise from the prior year, and full-year EPS was $21.58, up 64%. The company’s net income for Q4 was $2.1 billion, up 28% from the previous year, while operating cash flow reached a record $9.1 billion for the full year.
On January 24, 2025, Paul Newsome of Piper Sandler upgraded The Travelers Companies Inc. (NYSE:TRV) from a “Hold” to a “Buy” rating, raising the price target from $259 to $310, which reflects a potential upside of nearly 28%.
5. W. R. Berkley Corporation (NYSE:WRB)
Number of Hedge Fund Holders: 39
W. R. Berkley Corporation (NYSE:WRB) is a leading global insurance holding company, recognized for its diverse range of property and casualty insurance products. The company operates through a network of subsidiaries and is known for its strong underwriting discipline and long-term financial performance. With a focus on innovation and strategic growth, the company provides a comprehensive portfolio of services to both commercial and individual clients.
W. R. Berkley Corporation (NYSE:WRB) has recently achieved significant financial milestones. In the fourth quarter of 2024, the company reported a return on equity of 30.9% and operating income of $453 million, marking a 15.5% increase from the previous year. For the full year, net income reached $1.8 billion. The company returned substantial capital to shareholders, with $835.6 million in total capital returned through special and regular dividends as well as share repurchases.
In December 2024, W. R. Berkley Corporation (NYSE:WRB) announced the establishment of a branch office for Berkley Insurance Company in GIFT City, Gujarat, India. This expansion aims to introduce specialty insurance products to the Indian market, with operations expected to commence in 2025.
Currently, 39 hedge funds in Insider Monkey’s Q3 2024 database held positions in W. R. Berkley Corporation (NYSE:WRB).
4. American International Group Inc. (NYSE:AIG)
Number of Hedge Fund Holders: 49
American International Group Inc. (NYSE:AIG) is a leading global insurance organization providing property-casualty insurance, life insurance, retirement solutions, and financial services. The company has a long history of serving individuals, businesses, and institutions worldwide.
American International Group Inc. (NYSE:AIG) has expanded CEO Jon Hancock’s leadership role globally and launched Syndicate 2478 at Lloyd’s, a new reinsurance syndicate aimed at enhancing its reinsurance capabilities. The company continues to focus on operational improvements, including the consolidation of its Atlanta-area operations into a new innovation hub in Brookhaven. Despite challenges, such as the $500 million estimated loss from California wildfires, American International Group Inc. (NYSE:AIG) remains committed to supporting affected communities while also fostering innovation and efficiency within its business.
American International Group Inc. (NYSE:AIG)’s fourth-quarter 2024 results show a notable rebound, with net income attributable to common shareholders reaching $898 million, compared to just $86 million in Q4 2023. This sharp increase reflects improved performance in core operations and reduced losses from discontinued operations. However, for the full year, American International Group Inc. (NYSE:AIG) reported a net loss of $1.4 billion, down from a net profit of $3.6 billion in 2023, largely due to the accounting impact of the deconsolidation of Corebridge.
KBW analyst Meyer Shields maintains a Buy rating on American International Group Inc. (NYSE:AIG), with a price target of $87.00, reflecting confidence in the stock’s potential. As of February 12, 2025, the stock is trading at $75.55.
3. Chubb Limited (NYSE:CB)
Number of Hedge Fund Holders: 51
Chubb Limited (NYSE:CB) is a global insurance company operating in more than 50 countries, providing coverage to individuals, businesses, and institutions. With a strong focus on delivering high-quality risk management and claims services, the company is recognized for its innovative solutions in the insurance sector.
In January 2025, Chubb Limited (NYSE:CB) made key leadership changes in its Overseas General Insurance (COG) division to enhance underwriting consistency and drive international growth. Tim Stapleton was appointed Chief Underwriting Officer, focusing on improving underwriting operations and standards. Jason Neu, with Chubb Limited (NYSE:CB) since 2004, will take over as Executive Vice President for the international financial lines division. These moves reflect the company’s commitment to operational excellence and better meeting global client needs.
Financially, the company reported impressive results for the fourth quarter of 2024, with a record property and casualty underwriting income of approximately $1.6 billion, a 3.8% increase from the same period the previous year. Operating income for Q4 was $2.45 billion, down 28.1% year-over-year, but for the full year, it reached $9.2 billion, reflecting a slight 1.5% decline from 2023. Chubb Limited (NYSE:CB)’s operating earnings per share (EPS) for Q4 grew 10.5%, and the company maintained strong shareholder returns, repurchasing $725 million in shares and paying out $367 million in dividends.
51 hedge funds in Insider Monkey’s Q3 2024 database held positions in Chubb Limited (NYSE:CB).
2. The Allstate Corporation (NYSE:ALL)
Number of Hedge Fund Holders: 62
The Allstate Corporation (NYSE:ALL) provides a wide range of insurance services, including auto, home, and life insurance. The company’s extensive network of agents and use of digital tools allow it to serve millions of customers across the United States.
Recently, The Allstate Corporation (NYSE:ALL) has made notable strides in both its financial performance and strategic business decisions. In the fourth quarter of 2024, the company reported a 30% increase in net income, amounting to approximately $1.9 billion, despite facing significant losses due to natural disasters. EPS for Q4 came in at $7.07, marking a 28.1% improvement compared to the prior year. Net investment income also saw a substantial rise, up 37.9% year-over-year to $833 million. However, homeowners insurance faced some challenges, with underwriting income falling by $99 million due to increased catastrophe losses, including expected $1.1 billion in net losses from California wildfires.
In a move to refine its business portfolio, The Allstate Corporation (NYSE:ALL) announced the sale of its Group Health business to Nationwide in January 2025 for $1.25 billion. The company has also been proactive in supporting communities impacted by disasters, such as the wildfires in Southern California, where it assisted affected customers and pledged substantial donations to various relief funds. These developments highlight The Allstate Corporation (NYSE:ALL)’s ongoing commitment to growth, financial stability, and corporate social responsibility.
1. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holders: 95
The Progressive Corporation (NYSE:PGR) is a prominent American insurance company known for its innovative approach to providing car, home, and other types of insurance. The company has grown to become one of the largest insurers in the U.S. with a strong presence in both personal and commercial lines of coverage. The Progressive Corporation (NYSE:PGR) is known for its famous “Flo” character in advertising and its continuous efforts to enhance the user experience through digital tools and services.
The Q4 2024 highlighted The Progressive Corporation (NYSE:PGR)’s continued growth and efficiency. The company reported a 20% increase in net premiums written, reaching $18.11 billion, and a 19% rise in net income, which amounted to approximately $2.36 billion. Earnings per share (EPS) also surpassed expectations, achieving $4.01 compared to the anticipated $3.53.
The Progressive Corporation (NYSE:PGR) has recently introduced Accident Response, a mobile app feature designed to assist customers in major accidents. The company also supports communities through its 12th Annual Keys to Progress Program, donating vehicles to military families. Additionally, The Progressive Corporation (NYSE:PGR) expanded its reach with partnerships like its collaboration with fantasy football analyst Matthew Berry and the renewal of its naming rights for Cleveland’s Progressive Field through 2036. These initiatives highlight the company’s focus on innovation, growth, and community engagement.
Elyse Greenspan of Wells Fargo maintained a Buy rating on the stock, raising the target price from $302 to $313, implying a 22.33% upside.
Overall The Progressive Corporation (NYSE:PGR) ranks first on our list of the 12 Best Property & Casualty Insurance Stocks to Buy Now. While we acknowledge the potential for PGR as an investment, our conviction lies in the belief that some 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 PGR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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