We recently published an article titled Why These 15 Insurance Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where Brown & Brown, Inc. (NYSE:BRO) stands against the other insurance stocks.
Insurance stocks are back in the spotlight after Berkshire Hathaway’s annual shareholder report for 2024. These stocks are not only benefiting from stable cash flows, but they are also benefiting from higher investment yields and premium growth as inflation trends have benefited insurers.
Moreover, AI and tech innovations are starting to spill over into many other industries, which include insurance. It is also benefiting from a demographic tailwind as the growing “silver segment” requires more life and health insurance.
As such, it is worth looking into some of the top performers in this industry. There are good reasons behind each of the stocks’ uptrends.
Insurance house, car and family health live concept. The insurance agent presents the toys that symbolize the coverage.
Methodology
For this article, I screened the top-performing defense stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. 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).
A close-up of an insurance product while an employee explains its features to a customer.
Brown & Brown, Inc. (NYSE:BRO)
Number of Hedge Fund Holders In Q4 2024: 39
Brown & Brown, Inc. (NYSE:BRO) is the sixth largest independent insurance brokerage firm in the world.
The stock is up significantly so far in 2025 as strong Q4 2024 earnings were released on January 27, 2025. It showed 13.8% organic revenue growth with total revenues at $1.2 billion. Adjusted EPS also increased 24.6% to $0.86.
Morgan Stanley initiated coverage in December 2024 with an Overweight rating and $134 price target. It projects $4.22 in 2025 EPS and $4.7 in 2026 EPS. Plus, the company appointed Stephen P. Hearn as Executive Vice President and Chief Operating Officer in February 2025. It targets $8 billion in revenue.
It also declared $0.15 per share in dividends in January.
The consensus price target of $113.17 implies 1.36% upside.
Brown & Brown, Inc. (NYSE:BRO) is up 9.65% year-to-date.
Overall BRO ranks 11th on our list of the insurance stocks that are skyrocketing so far in 2025. While we acknowledge the potential of BRO 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 BRO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
