In this article, we will discuss 10 Best Insurance Stocks to Buy Following Q1 Earnings.
In a market landscape defined by volatility, speculation, and the relentless pursuit of the next high-growth narrative, the most quietly powerful wealth-compounding sector may be one that has been hiding in plain sight for centuries. That’s the understated but compelling premise behind insurance stocks, a sector that institutional investors and Warren Buffett disciples have long understood to be one of the most structurally advantaged businesses in all of finance.
At the same time, Q1 earnings results have provided the market with a clarifying moment. Companies demonstrating combined ratio improvement, reserve adequacy, and investment income expansion in a higher-for-longer rate environment are emerging as among the most attractive risk-adjusted opportunities in the entire equity market. Research from Swiss Re projects that global insurance premiums will grow at a healthy CAGR of approximately 3% through the remainder of the decade, driven by rising coverage demand across emerging markets, escalating cyber insurance adoption, and the repricing of catastrophe risk in an era of intensifying climate volatility.
Insurance stocks represent the rare convergence of defensive stability and genuine earnings growth momentum, a combination that is extraordinarily difficult to find in today’s market. For investors who value businesses with durable competitive moats, predictable cash flows, and the kind of compounding power that builds generational wealth without demanding constant reinvention, insurance may be the most compelling and underappreciated sector on the board today.
With this context in mind, here are some of the best insurance stocks to buy following Q1 earnings.
Our Methodology
We used stock screeners to identify insurance stocks with upside potential of over 30%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in ascending order of their upside potential.
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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 Best Insurance Stocks to Buy Following Q1 Earnings
10. Lincoln National Corporation (NYSE:LNC)
Target Price: $42.60
Upside Potential: 30.06%
Lincoln National Corporation (NYSE:LNC) received continued support from Wall Street on May 21 when Morgan Stanley lowered its price target to $40 from $43 while maintaining an Overweight rating on the shares. Although the target was modestly reduced, the firm noted that first-quarter results across the life insurance industry were generally strong and expressed confidence that earnings momentum could persist through the remainder of 2026. Morgan Stanley highlighted favorable operating trends and improving mortality experience across the sector, factors that are expected to support profitability and strengthen the earnings outlook for companies such as Lincoln National over the longer term.
Earlier, on May 14, UBS raised its price target on Lincoln National Corporation (NYSE:LNC) to $39 from $37 while maintaining a Neutral rating following the company’s first-quarter earnings report. The updated valuation reflects the firm’s revised financial model and suggests growing confidence in Lincoln National’s ability to navigate the current operating environment. The positive adjustment also underscores the resilience of the company’s diversified business model as it continues to benefit from stabilizing industry fundamentals and disciplined capital management.
Founded in 1905 and headquartered in Radnor, Pennsylvania, Lincoln National Corporation (NYSE:LNC) is a diversified financial services company that provides a broad range of insurance, retirement, and wealth-protection products. Its offerings include life insurance, annuities, group protection solutions, and employer-sponsored retirement plans, serving individuals, families, and businesses across the United States.
9. Reinsurance Group of America, Incorporated (NYSE:RGA)
Target Price: $195.10
Upside Potential: 30.30%
On May 18, Evercore ISI raised its price target on Reinsurance Group of America, Incorporated (NYSE:RGA) to $267 from $264 while maintaining an Outperform rating on the shares. The increase reflects the firm’s continued confidence in the company’s operating performance, earnings stability, and long-term growth prospects within the global life and health reinsurance industry.
On May 8, Barclays increased its price target on Reinsurance Group of America, Incorporated (NYSE:RGA) to $268 from $256 and reiterated an Overweight rating on the stock. The upward revision highlights the firm’s positive outlook on the company’s financial position and ability to capitalize on opportunities across the reinsurance market, while continuing to generate attractive returns for shareholders.
Founded in 1973 and headquartered in Chesterfield, Missouri, Reinsurance Group of America, Incorporated (NYSE:RGA) operates in the life and health insurance industry. The company partners with primary insurers to provide specialized reinsurance, transferring and spreading risk, along with asset-intensive financial solutions that help manage capital and optimize portfolios.
8. Genworth Financial, Inc. (NYSE:GNW)
Target Price: $11
Upside Potential: 30.95%
On May 13, Keefe Bruyette raised its price target on Genworth Financial, Inc. (NYSE:GNW) to $11 from $10.50 while maintaining an Outperform rating on the shares. The upward revision reflects growing confidence in the company’s operating performance and strategic positioning, as well as the firm’s positive outlook on Genworth’s ability to continue generating value for shareholders amid evolving conditions within the insurance industry.
On March 26, Keefe Bruyette re-initiated coverage of Genworth Financial, Inc. (NYSE:GNW) with an Outperform rating and a $10.50 price target. The firm noted that the life insurance sector presents a mixed fundamental backdrop, with companies benefiting from reduced liability tail risk, improved free cash flow generation, and stronger growth trends. At the same time, the analyst highlighted industry challenges, including intensifying competition, increasing investment leverage, greater balance sheet complexity, and the eventual moderation of favorable macroeconomic tailwinds. Despite these factors, Keefe Bruyette expressed confidence in Genworth’s outlook and competitive positioning within the sector.
Formally incorporated in 2003 and headquartered in Richmond, Virginia, Genworth Financial, Inc. (NYSE:GNW) is a financial services company that helps families navigate the aging journey. They primarily provide long-term care insurance, life insurance, annuities, and mortgage insurance products.
7. Prudential plc (NYSE:PUK)
Target Price: $37.69
Upside Potential: 31.88%
On May 15, Morgan Stanley analyst Hadley Cohen lowered the firm’s price target on Prudential plc (NYSE:PUK) to 1,400 GBp from 1,420 GBp while maintaining an Overweight rating on the shares. Despite the modest reduction in the target price, the continued Overweight rating reflects the firm’s positive view of Prudential’s long-term prospects and confidence in the company’s ability to execute its growth strategy across its key markets.
On April 23, Morgan Stanley raised its price target on Prudential plc (NYSE:PUK) to 1,420 GBp from 1,270 GBp and reiterated an Overweight rating on the stock. The upward revision highlighted improving expectations for the company’s earnings potential and business outlook, reinforcing the firm’s constructive stance on Prudential’s exposure to attractive long-term growth opportunities in its core operating regions.
Founded in 1848, Prudential plc (NYSE:PUK) is headquartered in Hong Kong and London. It is a multinational financial services firm that provides life and health insurance, retirement services, and asset management solutions, primarily serving customers across Asia and Africa.
6. Assured Guaranty Ltd. (NYSE:AGO)
Target Price: $98.25
Upside Potential: 32.63%
Assured Guaranty Ltd. (NYSE:AGO) received a significant vote of confidence on May 19 when UBS analyst Brian Meredith upgraded the stock to Buy from Neutral and assigned a $94 price target. The firm argued that the company’s valuation, which trades at roughly a 40% discount to operating book value, does not adequately reflect the strength of its underlying business. UBS highlighted Assured Guaranty’s leadership position within its market, resilient earnings profile, and strong cash-generating capabilities, while noting that temporary concerns surrounding Brightline do not diminish the company’s core fundamentals or long-term value proposition.
Earlier, on May 8, Roth Capital downgraded Assured Guaranty Ltd. (NYSE:AGO) to Neutral from Buy and lowered its price target to $80 from $110. While the firm adopted a more cautious stance following the company’s extensive share repurchase activity, it also acknowledged that Assured Guaranty continues to maintain sufficient capital to support future buybacks. Roth further noted that first-quarter earnings exceeded expectations, aided by favorable tax-related developments and gains from asset sales, highlighting the company’s ongoing ability to generate meaningful earnings and shareholder value.
Incorporated in 2003 and headquartered in Hamilton, Bermuda, Assured Guaranty provides credit protection products, insurance, and reinsurance solutions to public finance, infrastructure, and structured finance markets worldwide. The company specializes in protecting bondholders and investors against credit losses, playing an important role in facilitating capital formation and financing for infrastructure and public-sector projects across global markets.
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