12 Best Insurance Dividend Stocks To Buy Now

Published April 7, 2023 at 6:14 am EDT Updated August 31, 2026 at 12:00 pm EDT

In this article, we discuss 12 best insurance dividend stocks to buy now.

The insurance industry in the US can be divided into several categories, including life insurance, health insurance, property and casualty insurance, and reinsurance. In 2022, the global annual insurance premiums exceeded $7 trillion and the sector is likely to experience a CAGR of 8.5% through 2028. Over the last few years, the insurance sector has shown resilience and adaptability in the face of various social and geopolitical events. However, other several ongoing factors currently contribute to the expanding protection gap, including natural catastrophes, cyber risks, and a net-zero economy. According to a report by Ernst & Young, the protection gap totaled over $1.4 trillion in 2021 and is expected to widen in the coming years as well.

The recent data breaches and cyber attacks have increased the importance of cyber insurance among individuals and institutions. According to a report by McKinsey & Company, cyber economic losses reached $945 billion in 2020, over 100 times the total premium market, which stood at $9 billion in 2021. The report also mentioned that two-thirds of companies in a survey by McAfee reported some kind of cyber incident in 2019. Due to these reasons, US insurance companies are deploying digital technologies for customer satisfaction. In this regard, artificial intelligence (AI) and machine learning are massively preferred by US insurers, which first came to prominence during the pandemic of 2020 when major organizations adopted work-from-home policies. Bloomberg cited data by Allied Market Research, which revealed that AI in the insurance market is expected to grow at a CAGR of 32.5% by 2031, reaching $45.7 billion globally.

The growing role of AI in the insurance market is also covered in one of our articles, titled 10 Hot Insurance Stocks To Buy Now. This report also highlighted a positive outlook for the sector this year as many individuals around the world started paying attention to their retirement and health-related plans. The returns of the insurance industry also showed a steady performance of the sector over the past 12 months. The S&P Insurance Select Industry Index fell by 5.37% in the past year, compared with a 9.61% decline in the S&P 500. Some of the popular insurance stocks include Chubb Limited (NYSE:CB), The Allstate Corporation (NYSE:ALL), and Travelers Companies, Inc. (NYSE:TRV).

Photo by nick chong on Unsplash

Our Methodology:

For this list, we selected several dividend stocks from the insurance sector that specialize in various different categories, including property and casualty insurance, life insurance, and reinsurance. These companies have raised their dividends for at least 10 years. We then selected 12 of these stocks with the highest number of hedge fund investors. We gauged hedge fund sentiment using Insider Monkey’s database of 943 hedge funds.

Best Insurance Dividend Stocks To Buy Now

12. The Hanover Insurance Group, Inc. (NYSE:THG)

Number of Hedge Fund Holders: 16

Dividend Yield as of April 5: 2.54%

The Hanover Insurance Group, Inc. (NYSE:THG) is an American insurance company that provides auto, home, and business insurance to its consumers. In April Piper Sandler raised its price target on the stock to $159 and maintained a Neutral rating on the shares, presenting a positive outlook on the property casualty insurance sector.

In the fourth quarter of 2022, The Hanover Insurance Group, Inc. reported revenue of $1.33 billion, up 9.14% from the same period last year. During the quarter, the company returned nearly $29 million to shareholders in dividends, which makes it one of the best dividend stocks on our list.

The Hanover Insurance Group, Inc. offers a quarterly dividend of $0.81 per share and has a dividend yield of 2.54%, as of April 5. The company maintains a 15-year streak of consistent dividend growth. Other popular insurance dividend stocks include Chubb Limited, The Allstate Corporation, and Travelers Companies, Inc..

At the end of December 2022, 16 hedge funds tracked by Insider Monkey reported having stakes in The Hanover Insurance Group, Inc., up from 14 a quarter earlier. These stakes have a collective value of over $68.2 million. Among these hedge funds, Markel Gayner Asset Management was the company’s leading stakeholder in Q4.

11. Assurant, Inc. (NYSE:AIZ)

Number of Hedge Fund Holders: 18

Dividend Yield as of April 5: 2.38%

Assurant, Inc. (NYSE:AIZ) is a New York-based insurance company that mainly provides risk management services and products to consumers. For FY22, the company returned $718 million to shareholders in dividends and share repurchases. Its revenue for Q4 2022 came in at $2.65 billion, which showed a 3.1% growth from the same period last year.

Assurant, Inc., one of the best dividend stocks, pays a quarterly dividend of $0.70 per share and has a dividend yield of 2.38%, as of April 5. The company has been raising its dividends consistently for the past 18 years.

Keefe Bruyette covered Assurant, Inc. in its March investors’ note and mentioned that it will outperform in the next few months. Given this, the firm upgraded the stock to Outperform and maintained a $152 price target.

At the end of Q4 2022, 18 hedge funds tracked by Insider Monkey reported owning stakes in Assurant, Inc., worth over $265 million. Lyrical Asset Management was the company’s leading stakeholder in Q4.

10. RLI Corp. (NYSE:RLI)

Number of Hedge Fund Holders: 19

Dividend Yield as of April 5: 0.80%

RLI Corp. (NYSE:RLI) specializes in property and casualty insurance, headquartered in Illinois, US. The company is one of the best dividend stocks on our list as it has raised its payouts for 47 years in a row. It currently pays a quarterly dividend of $0.26 per share for a dividend yield of 0.80%, as of April 5.

RLI Corp. remained committed to its shareholder return in the fourth quarter of 2022. During this period, the company paid roughly $330 million to shareholders in dividends.

As of the close of Q4 2022, 19 hedge funds tracked by Insider Monkey were long RLI Corp., owning stakes worth over $251.3 million collectively. With nearly 1.2 million shares, Markel Gayner Asset Management was the company’s leading stakeholder in Q4.

9. American Financial Group, Inc. (NYSE:AFG)

Number of Hedge Fund Holders: 24

Dividend Yield as of April 5: 2.08%

American Financial Group, Inc. (NYSE:AFG) is an Ohio-based financial services company that has insurance and investment businesses. In the fourth quarter of 2022, the company posted revenue of $1.62 billion, which was up 11.7% from the same period last year. For the full year, it returned over $1.23 billion to shareholders, including $1.02 billion in special dividends.

On April 3, American Financial Group, Inc. declared a quarterly dividend of $0.63 per share, which was in line with its previous dividend. The company’s current dividend growth streak stands at 17 years, which makes it one of the best dividend stocks on our list. The stock’s dividend yield on April 5 came in at 2.08%.

At the end of Q4 2022, 24 hedge funds in Insider Monkey’s database owned stakes in American Financial Group, Inc., the same as in the previous quarter. The total value of these stakes is over $294.6 million.

8. Old Republic International Corporation (NYSE:ORI)

Number of Hedge Fund Holders: 24

Dividend Yield as of April 5: 3.99%

Old Republic International Corporation (NYSE:ORI) is an American insurance company that deals in property insurance and title and deed. The company remained committed to its shareholder obligation in the most recent quarter as it paid $243.7 million to shareholders, including $67.2 million in dividends. It is among the best dividend stocks on our list.

On February 23, Old Republic International Corporation declared a 6.5% hike in its quarterly dividend to $0.245 per share. This marked the company’s 43rd consecutive year of dividend growth. The stock has a dividend yield of 3.99%, as of April 5.

At the end of Q4 2022, 24 hedge funds tracked by Insider Monkey were long Old Republic International Corporation, compared with 25 in the previous quarter. The collective value of stakes owned by these hedge funds is over $148.7 million.

7. First American Financial Corporation (NYSE:FAF)

Number of Hedge Fund Holders: 28

Dividend Yield as of April 5: 3.77%

First American Financial Corporation (NYSE:FAF) is a California-based company that provides insurance and settlement services to real estate and mortgage industries. In February, Stephens upgraded the stock to Overweight and also raised its price target on the stock to $72. The firm appreciated the company’s business model.

First American Financial Corporation, one of the best dividend stocks, currently pays a quarterly dividend of $0.52 per share. The company holds an 11-year streak of consistent dividend growth. The stock has a dividend yield of 3.77%, as of April 5.

As of the close of Q4 2022, 28 hedge funds tracked by Insider Monkey held stakes in First American Financial Corporation, with a total value of over $1.04 billion. Among these hedge funds, Ariel Investments was the company’s leading stakeholder in Q4.

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

Number of Hedge Fund Holders: 29

Dividend Yield as of April 5: 0.80%

Brown & Brown, Inc. ranked sixth on our list of the best dividend stocks. The company is a leading insurance brokerage and also provides risk management solutions to its consumers. It currently pays a quarterly dividend of $0.115 per share and has a dividend yield of 0.80%, as of April 5. The company has been raising its dividends for the past 29 years.

In addition to Brown & Brown, Inc., Chubb Limited, The Allstate Corporation, and Travelers Companies, Inc. are other best dividend stocks from the insurance sector.

Of the 943 hedge funds in Insider Monkey’s database, 29 funds owned stakes in Brown & Brown, Inc. in Q4 2022, up from 27 in the previous quarter. The collective value of these stakes is over $1.43 billion.

5. Prudential Financial, Inc. (NYSE:PRU)

Number of Hedge Fund Holders: 29
Dividend Yield as of April 5: 6.08%

Prudential Financial, Inc. (NYSE:PRU) is a New Jersey-based company that specializes in insurance, retirement planning, and investment management. In April, JPMorgan upgraded the stock to Overweight with a $114 price target. The firm expects the company to produce ‘healthy’ near-term results.

On February 8, Prudential Financial, Inc. declared a 4.2% hike in its quarterly dividend to $1.25 per share. Through this increase, the company took its dividend growth streak to 15 years, which makes it one of the best dividend stocks on our list. The stock’s dividend yield on April 5 came in at 6.08%.

As per Insider Monkey’s Q4 2022 database, 29 hedge funds owned stakes in Prudential Financial, Inc., up from 21 a quarter earlier. The collective value of these stakes is over $136 million. Citadel Investment Group was the company’s largest stakeholder in Q4.

4. Travelers Companies, Inc. (NYSE:TRV)

Number of Hedge Fund Holders: 35
Dividend Yield as of April 5: 2.21%

Travelers Companies, Inc. specializes in commercial property casualty insurance. In addition to this, the company provides a wide range of insurance-related services to its consumers. The company is one of the best dividend stocks on our list as it has raised its dividends for 33 years in a row. It currently offers a per-share dividend of $0.93 every quarter with a dividend yield of 2.21%, as of April 5.

In the fourth quarter of 2022, Travelers Companies, Inc. reported revenue of $8.8 billion, which showed a 10% growth from the same period last year. The company returned over $21.5 billion to shareholders in dividends and share repurchases throughout FY22.

At the end of Q4 2022, 35 hedge funds in Insider Monkey’s database reported having stakes in The Travelers Companies, Inc., down from 37 a quarter earlier. These stakes have a collective value of over $608.5 million.

3. Lincoln National Corporation (NYSE:LNC)

Number of Hedge Fund Holders: 36
Dividend Yield as of April 5: 8.34%

Lincoln National Corporation (NYSE:LNC) is an American holding company that specializes in various insurance and investment management businesses. Jefferies raised its price target on the stock to 455 in February and maintained a Buy rating on the shares. The firm appreciated the company’s free cash flow generation.

Lincoln National Corporation currently pays a quarterly dividend of $0.45 per share and has a dividend yield of 8.34%, as of April 5. The company has been rewarding shareholders with increased dividends for the past 11 years, which places it as one of the best stocks on our list.

As of the close of Q4 2022, 36 hedge funds tracked by Insider Monkey reported having stakes in Lincoln National Corporation, worth roughly $505 million collectively. Among these hedge funds, Lyrical Asset Management was the company’s leading stakeholder in Q4.

2. The Allstate Corporation (NYSE:ALL)

Number of Hedge Fund Holders: 37
Dividend Yield as of April 5: 3.15%

The Allstate Corporation is one of the leading providers of supplemental insurance coverage, based in Illinois, US. On February 17, the company announced a 4.7% increase in its quarterly dividend to $0.89 per share. This was the company’s 15th consecutive year of dividend growth. The stock’s dividend yield came in at 3.15% on April 5.

In April, Piper Sandler raised its price target on The Allstate Corporation to $150 with an Overweight rating on the shares, presenting a positive stance on the property casualty insurers. The firm further mentioned that the sector will be defensive in a volatile financial market.

The number of hedge funds tracked by Insider Monkey owning stakes in The Allstate Corporation stood at 37 in Q4 2022. The stakes owned by these hedge funds have a total value of over $401 million.

1. Chubb Limited (NYSE:CB)

Number of Hedge Fund Holders: 45
Dividend Yield as of April 5: 1.70%

Chubb Limited tops our list of the best dividend stocks from the insurance sector. The company has operations in over 54 countries. It has been raising its dividends consistently for the past 29 years while paying uninterrupted dividends for 121 years. The company pays a quarterly dividend of $0.83 per share and has a dividend yield of 1.70%, as of April 5.

At the end of Q4 2022, the number of hedge funds tracked by Insider Monkey owning stakes in Chubb Limited grew to 45, from 41 in the previous quarter. The collective value of these stakes is over $2.18 billion.

Aristotle Capital Management mentioned Chubb Limited in its Q1 2022 investor letter. Here is what the firm has to say:

“Our investment in Chubb began in the fourth quarter of 2015, shortly after ACE Limited announced it would acquire the Chubb Corporation, creating the largest global property and casualty insurance company by underwriting income. During our nearly seven-year holding period, the company’s combination progressed leading to the realization of main catalysts we had identified. These included cost savings, broadened product offerings and an expanded customer base, as well as enhanced distribution capabilities and improved pricing due to scale. In addition, Chubb successfully grew its profitable high-net-worth personal lines. While we still consider Chubb to be a high-quality business, few catalysts remain after what was, in our opinion, a remarkable run of successful business execution. As such, we decided to step aside in favor of what we believe to be a more optimal investment in Blackstone.”

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