In this article, we discuss 11 best insurance brokerage stocks to buy now.

Insurance brokers are professionals who act as intermediaries between insurance companies and individuals or organizations seeking insurance coverage. They provide advice, assistance, and access to a wide range of insurance products and services from different insurance providers, helping their clients find the coverage that best meets their needs and budget. Research and Markets anticipated that the worldwide insurance industry would expand at a compounded annual growth rate (CAGR) of 10.4% from $5,376.92 billion in 2021 to $5,938.41 billion in 2022. Moreover, the market is projected to reach $8,398.11 billion in 2026 with a compounded annual growth rate of 9.1%.

In recent years, insurance companies have shown great adaptability and strength in overcoming various challenges, including the effects of the pandemic and the economic consequences of the Russia-Ukraine conflict. Deloitte reported that although property and casualty insurance price increases were a contributing factor in the rise of premium revenue and the achievement of a consolidated surplus in the United States exceeding $1 trillion, inflation is also pushing up loss costs at a higher and faster rate in most markets, which is negatively impacting the profitability of underwriting. Meanwhile, the small business insurance market is experiencing significant changes, and the increasing shift to green energy and associated insurance offerings, as well as coverage for emerging intangible assets like cryptocurrency, non-fungible tokens (NFTs), and virtual activities in the metaverse, indicate that there are ample opportunities for expansion in the insurance space. 

EY has stated that the effects of inflation will differ across the insurance industry. P&C insurers in the US will be especially impacted by inflation-related rises in claims costs, such as for repairs, replacement parts, and labor. This is due to regulators in the US being resistant to approving rate increases. In the Asia-Pacific region, many insurance products have a short-tail nature, which enables insurers to adjust policy pricing quickly in response to inflation and partially make up for depleted reserves. Life insurance firms are tentatively hopeful since higher interest rates currently contribute to future profitability and appear to outweigh the effects of inflation. 

There are multiple growth and expansion opportunities in the insurance market. To benefit from the boom in this industry, some of the best insurance brokerage stocks to invest in include Aon plc (NYSE:AON), Arthur J. Gallagher & Co. (NYSE:AJG), and Marsh & McLennan Companies, Inc. (NYSE:MMC). 

Our Methodology 

We scanned Insider Monkey’s database of 943 hedge funds and picked the top 11 companies that operate in the insurance brokerage sector with the highest number of hedge fund investors. These are the best insurance brokerage stocks to buy according to hedge funds.

Best Insurance Brokerage Stocks To Buy Now

11. Crawford & Company (NYSE:CRD-A)

Number of Hedge Fund Holders: 5

Crawford & Company (NYSE:CRD-A) offers services for managing claims and outsourcing to carriers, brokers, and corporations across several regions including the United States, the United Kingdom, Europe, Canada, Australia, Asia, and Latin America. The company has four divisions – North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions. On May 4, Crawford & Company (NYSE:CRD-A) reported a Q1 GAAP EPS of $0.22 and a revenue of $313 million, up 12.2% year-over-year. 

On March 10, Barrington analyst Kevin Steinke raised the firm’s price target on Crawford & Company (NYSE:CRD-A) to $12 from $10 and maintained an Outperform rating on the shares, noting that Q4 revenue and profitability exceeded expectations. The analyst believes that Crawford & Company (NYSE:CRD-A) has an advantage over its competitors due to its investments in technology, service quality, scale, and expertise in various insurance coverages.

According to Insider Monkey’s fourth quarter database, 5 hedge funds were bullish on Crawford & Company (NYSE:CRD-A), compared to 7 funds in the prior quarter. Scott Wallace’s Wallace Capital Management is the largest stakeholder of the company.  

Like Aon plc (NYSE:AON), Arthur J. Gallagher & Co. (NYSE:AJG), and Marsh & McLennan Companies, Inc. (NYSE:MMC), Crawford & Company (NYSE:CRD-A) is one of the best insurance brokerage stocks to invest in. 

10. SelectQuote, Inc. (NYSE:SLQT)

Number of Hedge Fund Holders: 8

SelectQuote, Inc. (NYSE:SLQT) sells insurance products and healthcare services in the United States through a technology-enabled, direct-to-consumer distribution platform. The company offers a variety of policies, including senior health policies like Medicare supplement and Medicare Part D, as well as term life, non-commercial auto, and home property and casualty policies. It is one of the best insurance brokerage stocks to invest in. 

On February 8, Citi analyst Daniel Grosslight increased the price target of SelectQuote, Inc. (NYSE:SLQT) from 80c to $1.50 and maintained a Neutral rating on the shares following the fiscal Q2 results. The analyst sees some positive signs, noting that the company saw a significant improvement in Senior unit economics during the crucial AEP season.

According to Insider Monkey’s fourth quarter database, 8 hedge funds were long SelectQuote, Inc. (NYSE:SLQT), compared to 11 funds in the prior quarter. Donald L. Hawks’ Brookside Equity Partners is the biggest stakeholder of the company, with 17.6 million shares worth $11.8 million. 

Here is what Carillon Tower Advisers has to say about SelectQuote, Inc. (NYSE:SLQT) in its Q2 2021 investor letter:

“SelectQuote is a technology-enabled, direct-to-consumer distributor of complex senior health, life, auto, and home insurance policies. The stock underperformed during the quarter after the company reported results that were in line with expectations, but lowered the next quarter earnings outlook slightly due to investments in an adjacent business.”

9. BRP Group, Inc. (NASDAQ:BRP)

Number of Hedge Fund Holders: 12

BRP Group, Inc. (NASDAQ:BRP) sells and promotes insurance products and services in the United States. The company operates through four segments – Middle Market, Specialty, MainStreet, and Medicare. It is one of the best insurance brokerage stocks to watch. On February 28, BRP Group, Inc. (NASDAQ:BRP) reported a Q4 non-GAAP EPS of $0.12 and a revenue of $246.04 million, outperforming Wall Street estimates by $0.02 and $13.16 million, respectively. Revenue for the period climbed 54.5% on a year-over-year basis. 

On April 10, Jefferies analyst Yaron Kinar maintained a Hold rating on BRP Group, Inc. (NASDAQ:BRP) and reduced the price target on the shares from $29 to $28. This comes as part of the firm’s Q1 preview for the P&C Insurance and Insurtech space. Jefferies predicts that Q1 industry catastrophe losses will be around $10 billion, which is in line with or slightly above the seasonal average for Q1.

According to Insider Monkey’s fourth quarter database, 12 hedge funds were long BRP Group, Inc. (NASDAQ:BRP), compared to 14 funds in the prior quarter. Tim David’s Guardian Point Capital is the largest stakeholder of the company, with 575,000 shares worth $14.45 million. 

Here is what Madison Small Cap Fund has to say about BRP Group, Inc. (NASDAQ:BRP) in its Q3 2022 investor letter:

“BRP Group (NASDAQ:BRP) operates as one of largest middle market insurance brokers in a highly fragmented domestic market. Historically, insurance brokerage has been very resilient in economic downturns. Their unique acquisition strategy in a highly fragmented industry should lead to above-average growth for many years. We also like BRP’s organic growth characteristics due to their exposure in middle market brokerage. BRP has attractive margins with room for meaningful expansion. The market selloff gave us an opportunity to initiate this new investment at very attractive prices. We estimate BRP’s private market value to be $35.”

8. eHealth, Inc. (NASDAQ:EHTH)

Number of Hedge Fund Holders: 13

eHealth, Inc. (NASDAQ:EHTH) runs a marketplace for health insurance that offers solutions for consumer engagement, education, and health insurance enrollment in the United States. On May 1, eHealth, Inc. (NASDAQ:EHTH) shares rose by 11.7% following the company’s confirmation of its previously announced outlook for 2023. The company anticipates achieving total revenues between $420 million to $440 million for the full year ending December 31, 2023, which is in line with consensus estimate of $424.48 million. It is one of the best insurance brokerage stocks to invest in. 

On March 1, Craig-Hallum analyst George Sutton increased the price target on eHealth, Inc. (NASDAQ:EHTH) from $6 to $11 and maintained a Buy rating on the shares after analyzing the company’s Q4 results. The analyst thinks that eHealth, Inc. (NASDAQ:EHTH) will continue to differentiate itself from its competitors, thanks to its leading online and omni-channel platforms, unless there is an aggressive flow of capital back into this sector.

According to Insider Monkey’s fourth quarter database, 13 hedge funds were bullish on eHealth, Inc. (NASDAQ:EHTH), compared to 20 funds in the last quarter. William Leland Edwards’ Palo Alto Investors is the biggest stakeholder of the company, with 2.48 million shares worth $12 million. 

Alger Small Cap Focus Fund released its Q3 2020 Investor letter and mentioned eHealth, Inc. (NASDAQ:EHTH). Here is what the fund said: 

“eHealth is a leading health insurance marketplace primarily focused on Medicare plans. Its technology and service platform provide consumer engagement, education and enrollment services. The marketplace offers consumers a broad choice of insurance products, including thousands of options for Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans eHealth also offers non-Medicare options from a diverse mix of health insurance carriers in the U.S. In July eHealth reported better-than-expected financial results for the second quarter, but its stock still underperformed. eHealth has faced increased investor scrutiny of customer churn and its estimates of the lifetime value of an approved member. During its July report of its second quarter results, the company said it experienced higher-than-expected churn among customers who selected programs during open enrollment periods occurring in the fourth quarter of 2019 and the first quarter of 2020.”

7. CorVel Corporation (NASDAQ:CRVL)

Number of Hedge Fund Holders: 17

CorVel Corporation (NASDAQ:CRVL) offers workers’ compensation, auto, liability, and health solutions to help employers, insurance companies, third party administrators, and government agencies manage medical costs and improve the quality of care associated with healthcare claims. CorVel Corporation (NASDAQ:CRVL) is one of the premier insurance brokerage stocks to invest in. On January 31, the company reported a Q4 GAAP EPS of $0.96 and a revenue of $179 million, up 8.6% year-over-year. 

According to Insider Monkey’s fourth quarter database, 17 hedge funds were bullish on CorVel Corporation (NASDAQ:CRVL), with collective stakes worth $127.30 million, compared to 15 funds in the prior quarter worth $126.80 million. Ray Dalio’s Bridgewater Associates is the biggest stakeholder of the company, with 10,771 shares worth $1.56 million. 

6. Erie Indemnity Company (NASDAQ:ERIE)

Number of Hedge Fund Holders: 17

Erie Indemnity Company (NASDAQ:ERIE) acts as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States, offering various services including sales, underwriting, policy issuance, and renewal services. The company also provides sales-related services such as agent compensation and sales and advertising support, as well as underwriting services including underwriting and policy processing. 

On April 27, Erie Indemnity Company (NASDAQ:ERIE) reported a Q1 GAAP EPS of $1.65 and a revenue of $752.46 million, outperforming Wall Street estimates by $0.09 and $47.46 million, respectively. 

According to Insider Monkey’s fourth quarter database, 17 hedge funds were bullish on Erie Indemnity Company (NASDAQ:ERIE), with collective stakes worth $67.3 million. Cliff Asness’ AQR Capital Management is the biggest stakeholder of the company, with 77,350 shares worth $19 million. 

In addition to Aon plc (NYSE:AON), Arthur J. Gallagher & Co. (NYSE:AJG), and Marsh & McLennan Companies, Inc. (NYSE:MMC), Erie Indemnity Company (NASDAQ:ERIE) is one of the top insurance brokerage stocks to watch.

5. Brown & Brown, Inc. (NYSE:BRO)

Number of Hedge Fund Holders: 29

Brown & Brown, Inc. (NYSE:BRO) offers insurance products and services in the United States, Canada, Ireland, and the United Kingdom. It has four main business segments – Retail, National Programs, Wholesale Brokerage, and Services. On April 25, Brown & Brown, Inc. (NYSE:BRO) reported a Q1 non-GAAP EPS of $0.84 and a revenue of $1.12 billion, outperforming Wall Street estimates by $0.03 and $50 million, respectively. It is one of the best insurance brokerage stocks to invest in. 

On April 25, Brown & Brown, Inc. (NYSE:BRO) declared a $0.115 per share quarterly dividend, in line with previous. The dividend is payable on May 17, to shareholders of the company as of May 8. 

Citi analyst Michael Ward upgraded Brown & Brown, Inc. (NYSE:BRO) on April 18 to Buy from Neutral with a price target of $69, up from $62. The analyst favors property and casualty brokers over underwriters due to their lower balance sheet risk. Despite some difficulties faced by Brown & Brown, Inc. (NYSE:BRO) recently, including tough comparisons in employee benefits, dealer services headwinds, and disruptions caused by Hurricane Ian, the company is poised for growth, according to the analyst. 

According to Insider Monkey’s fourth quarter database, 29 hedge funds were bullish on Brown & Brown, Inc. (NYSE:BRO), compared to 27 funds in the prior quarter. Select Equity Group is the largest stakeholder of the company, with 17.2 million shares worth $983.40 million. 

TimesSquare U.S. Small/Mid Cap Growth Strategy made the following comment about Brown & Brown, Inc. (NYSE:BRO) in its Q4 2022 investor letter:

“With the improving backdrop for insurance companies, we began a position in Brown & Brown, Inc. (NYSE:BRO). An independent insurance broker specializing in property, casualty, employee benefits, personal lines, and ancillary services, we believe that Brown will benefit as insurance pricing broadly increases and the company has consistently higher margins than peers. The recent weakness in its shares provided a particularly attractive opportunity for building our position.”

4. Arthur J. Gallagher & Co. (NYSE:AJG)

Number of Hedge Fund Holders: 36

Arthur J. Gallagher & Co. (NYSE:AJG) offers insurance and reinsurance brokerage, consulting, and third-party claims settlement and administration services to businesses and organizations across the globe. The company is divided into two main segments – Brokerage and Risk Management. On April 27, Arthur J. Gallagher & Co. (NYSE:AJG) declared a $0.55 per share quarterly dividend, in line with previous. The dividend is payable on June 16, to shareholders of record on June 2. 

On April 27, Arthur J. Gallagher & Co. (NYSE:AJG) reported a Q1 non-GAAP EPS of $3.03 and a revenue of $2.71 billion, outperforming Wall Street estimates by $0.04 and $20 million, respectively. 

Raymond James analyst C. Gregory Peters raised the firm’s price target on Arthur J. Gallagher & Co. (NYSE:AJG) on May 1 to $240 from $215 and reiterated a Strong Buy rating on the shares. The analyst believes that the company’s growth and margins will be above the industry average until 2024.

According to Insider Monkey’s fourth quarter database, 36 hedge funds were bullish on Arthur J. Gallagher & Co. (NYSE:AJG), compared to 37 funds in the last quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is the biggest stakeholder of the company, with 1 million shares worth $193 million. 

Here is what Cooper Investors Global Equities Fund has to say about Arthur J. Gallagher & Co. (NYSE:AJG) in its Q1 2022 investor letter:

“In terms of underlying businesses, the portfolio holdings are going well and largely reported solid numbers during earnings season with positive language around the outlook for 2022. Our insurance broker Arthur J Gallagher is a stand-out performer, delivering low-double-digit organic revenue growth at the same time as margin expansion – this is a business that benefit from higher interest rates, emerging risks and inflating premiums. While rising rates, supply chain constraints and war in Europe represent a myriad of challenges for many industries, our view is that our management teams are highly experienced focused operators. They are well equipped to deal with these challenges, having shown great resilience and flexibility during many crises, the most recent example (COVID) proving yet again the power of their business models.”

3. Willis Towers Watson Public Limited Company (NASDAQ:WTW)

Number of Hedge Fund Holders: 36

Willis Towers Watson Public Limited Company (NASDAQ:WTW) provides advisory, broking, and solutions services. The company operates in two main segments – Health, Wealth and Career and Risk & Broking. On April 27, Willis Towers Watson Public Limited Company (NASDAQ:WTW) reported a Q1 non-GAAP EPS of $2.84, beating Wall Street estimates by $0.04. Revenue increased 4% to $2.2 billion with organic growth of 8%, however, it missed Street consensus by $20 million. It is one of the best insurance brokerage stocks to invest in. 

On May 1, Baird analyst Mark Marcon maintained an Outperform rating on Willis Towers Watson Public Limited Company (NASDAQ:WTW) but lowered the firm’s price target on the shares to $257 from $259. The analyst acknowledged that some targets are taking longer to achieve than initially anticipated, but he still likes the company. He noted that organic revenue growth, margins, and free cash flow are gradually improving, the valuation is reasonable, and the majority of the business is not sensitive to economic cycles. Additionally, the company continues to return cash to shareholders.

According to Insider Monkey’s fourth quarter database, 36 hedge funds were bullish on Willis Towers Watson Public Limited Company (NASDAQ:WTW), compared to 42 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest stakeholder of the company, with approximately 5 million shares worth $1.20 billion. 

Here is what Artisan Partners specifically said about Willis Towers Watson Public Limited Company (NASDAQ:WTW) in its Q3 2022 investor letter:

“Willis Towers Watson Public Limited Company (NASDAQ:WTW) shares rose 2% in the quarter. This modest increase made it one of our best performers during a difficult quarter. Absent significant news, the business continues to benefit from a hard insurance market. Results are still lagging peers, but the management team seems to be making progress in closing the gap. In the meantime, the company is returning significant amounts of capital to shareholders. Over the past eight months, it has repurchased $4 billion in stock and reduced the share count by 15%. And there is more on the way. This is a good business in a fantastic industry trading at 12X normalized earnings . We believe it is worth much more.”

2. Marsh & McLennan Companies, Inc. (NYSE:MMC)

Number of Hedge Fund Holders: 52

Marsh & McLennan Companies, Inc. (NYSE:MMC) is a professional services company that offers advice and solutions to clients across the globe in the fields of risk, strategy, and people. The company is divided into two main segments – Risk and Insurance Services, and Consulting. The Risk and Insurance Services segment provides various risk management services, including risk advice, transfer, and control, as well as insurance and reinsurance broking, advisory, and analytics solutions. 

On April 20, Marsh & McLennan Companies, Inc. (NYSE:MMC) reported a Q1 non-GAAP EPS of $2.53 and a revenue of $5.9 billion, outperforming Wall Street estimates by $0.06 and $40 million, respectively. 

Gregory Peters, an analyst at Raymond James, increased the price target on Marsh & McLennan Companies, Inc. (NYSE:MMC) on April 21 from $185 to $195 and maintained an Outperform rating on the shares. The analyst thinks that Marsh & McLennan Companies, Inc. (NYSE:MMC) is better positioned to report organic revenue growth than Aon, and if the company’s cost-saving measures are combined with this growth, it could result in more potential margin expansion. 

According to Insider Monkey’s fourth quarter database, 52 hedge funds were bullish on Marsh & McLennan Companies, Inc. (NYSE:MMC), compared to 55 funds in the prior quarter. Ric Dillon’s Diamond Hill Capital is the biggest stakeholder of the company, with 1.7 million shares worth $287.7 million. 

ClearBridge All Cap Growth Strategy made the following comment about Marsh & McLennan Companies, Inc. (NYSE:MMC) in its Q4 2022 investor letter:

“We increased our financials exposure with Marsh & McLennan Companies, Inc. (NYSE:MMC), which is the world’s largest insurance broker and operates two consulting businesses, Mercer and Oliver Wyman. The company benefits from attractive insurance industry dynamics, durable underlying revenue drivers and a strong margin/free cash flow profile. MMC has demonstrated the ability to grow revenue in excess of GDP growth, particularly during periods of strong property & casualty commercial industry pricing like the current environment, while experiencing more modest revenue declines than overall GDP during past recessions. The insurance brokerage segment does not take underwriting risk but instead earns fees and commissions based on services provided, resulting in low capital intensity and strong free cash flow generation. In aggregate, we believe MMC’s business will be durable during recessionary periods. Risks include a valuation on the higher end of the stock’s historical range, limited exposure to changes in GDP growth and the likelihood that shares would lag balance sheet intensive financials in a rebound.”

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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Disclosure: None. 11 Best Insurance Brokerage Stocks To Buy Now is originally published on Insider Monkey.