5 Best Insurance Brokerage Stocks To Buy Now

1. Aon plc (NYSE:AON)

Number of Hedge Fund Holders: 56

Aon plc (NYSE:AON) is a global professional services company that provides advice and solutions related to risk, retirement, and health. Its services include commercial risk solutions like retail brokerage and global risk consulting, as well as health solutions like health and benefits brokerages and health care exchanges. On April 14, Aon plc (NYSE:AON) declared a $0.615 per share quarterly dividend, a 9.8% increase from its prior dividend of $0.560. The dividend is payable on May 15, to shareholders of record on May 1. 

On April 18, Citi increased Aon plc (NYSE:AON)’s price target from $340 to $344 and maintained a Neutral rating on the shares in anticipation of Q1 results. The analyst still prefers property and casualty brokers over underwriters because they pose less balance sheet risk. In the commercial lines, the firm sees property pricing firmness and adequate reserves. However, Citi is slightly cautious about auto insurance due to recent misses and persistent volatility in loss trends. 

According to Insider Monkey’s fourth quarter database, 56 hedge funds were bullish on Aon plc (NYSE:AON), compared to 49 funds in the earlier quarter. 

Polen International Growth Strategy made the following comment about Aon plc (NYSE:AON) in its Q4 2022 investor letter:

“Aon plc (NYSE:AON) reported broad-based growth across business units and geographies. This growth was driven by solid new business wins, robust retention and renewals, and a “modest” boost from pricing due to inflation on asset values. In the wake of Hurricane Ian, the reinsurance unit continues to show their ability to flex their analytics muscle and create innovative solutions for insurance carrier clients looking to diversify and offload risk. Stepping back, we see Aon as a durable, highly cash flow generative business that is performing well in a difficult macro backdrop, as we would expect, and we maintain our positive view on the long-term potential of the business in the years ahead.”

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