In this article, we will discuss: 9 Best Life Insurance Stocks to Buy Now.
On December 4, 2025, Reinsurance News reported that Fitch Ratings maintained a ‘neutral’ outlook for the North American life insurance sector in 2026. It cited solid balance sheets as a partial offset to slower economic growth, increased macroeconomic volatility, and geopolitical instability. Despite higher exposure to private credit, the agency expects life insurers to keep strong capitalization and careful asset-liability management. Investment risk is likely to rise slightly. However, insurers will continue to focus on investment-grade bonds while expanding allocations to less liquid assets, such as private credit, through partnerships with alternative investment managers.
Fitch anticipates that collaborations with alternative investment managers and offshore reinsurance will persist, resulting in a dynamic regulatory environment focused on ensuring capital adequacy relative to risk. As shown by “Strong” Prism capital model scores, cash flow matching, and asset class diversification, strong capitalization mitigates incremental market susceptibility, per Fitch. The goal of regulatory control by the Bermuda Monetary Authority and the National Association of Insurance Commissioners (NAIC) in the US is to improve resilience and transparency in the face of portfolio fluctuations.
It is projected by Fitch that operating profits will not change. Spread widening should increase net investment income, with policy rate cuts slightly offsetting this benefit. Exposure to commercial real estate is still under pressure, although it is decreasing. Reserves for anticipated credit loss have increased. Jamie Tucker, Senior Director at AM Best, further elaborated on ‘Neutral outlook and stated:
“Fitch views life insurers’ strong balance sheets as a partial mitigant against potentially slowing economic growth, heightened macroeconomic volatility and geopolitical uncertainty. Investment risk is expected to continue to increase on the margin and investment losses will increase YoY. The regulatory environment will remain dynamic, reflecting continued portfolio shifts, offshore reinsurance and partnerships with alternative investment managers.”
With that said, here are the 9 Best Life Insurance Stocks to Buy Now.
Our Methodology
To compile our list of the 9 Best Life Insurance Stocks to Buy Now, we utilized online screeners to generate an initial list of all U.S.-listed life insurance companies. From this pool, we looked for stocks with the best hedge fund holdings, which we assessed using Insider Monkey’s database of hedge funds as of Q3 2025. Then we chose those stocks with the best upside as of December 4. Finally, we ranked these stocks in ascending order by the number of hedge funds holding stakes.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
9. Abacus Global Management, Inc. (NASDAQ:ABL)
Number of Hedge Fund Holders: 20
Analysts’ Upside Potential as of December 4: 98.13%
Abacus Global Management, Inc. (NASDAQ:ABL) is one of the Best Insurance Stocks.
Northland Securities analyst Michael Grondahl reaffirmed his buy rating for Abacus Life, Inc. (NASDAQ: ABL) on December 5, according to TheFly. The analyst kept the stock’s price target at $13.50.
According to GlobeNewswire, Abacus Global Management, Inc. (NASDAQ:ABL) announced the date of its first-ever annual cash dividend on November 25, 2025. The Board of Directors had previously given its approval. The Board announced that shareholders of record as of December 2, 2025, will receive an annual dividend of $0.20 per share on December 17, 2025, the ex-dividend date.
According to the company’s dividend policy, payouts of up to 25% of adjusted net income or 55% of recurring revenue are permitted. According to CEO Jay Jackson, record cash creation, higher fee-based revenue, and growing margins will support the dividend, which will be financed by cash on hand and free cash flow.
Announced in early November, Abacus Global Management, Inc. (NASDAQ:ABL)’s Q3 non-GAAP earnings per share of $0.24 were above projections by $0.06, and revenue of $63 million exceeded expectations by $15.58 million. Revenue jumped by 124.2% year on year.
Separately, Abacus Global Management, Inc. (NASDAQ:ABL) shares had increased 10.11% during the previous five days as of December 3, 2025.
The financial services firm Abacus Global Management, Inc. (NASDAQ:ABL) focuses on institutional services, life solutions, data-driven wealth solutions, and alternative asset management.
8. Primerica, Inc. (NYSE:PRI)
Number of Hedge Fund Holders: 29
Analysts’ Upside Potential as of December 4: 19.97%
Primerica, Inc. (NYSE:PRI) is among the Best Insurance Stocks.
As of December 5, analyst views tilt towards the cautious side for Primerica, Inc. (NYSE:PRI) with only 40% of analysts recommending a Buy. But the stock is expected to see around 20% potential upside, based on the consensus 1-year median price target of $303.
According to TheFly, Morgan Stanley analyst Bob Huang reduced Primerica, Inc. (NYSE:PRI)’s price objective from $306 to $301 on November 17, 2025. The company’s rating remained Equal Weight.
Morgan Stanley adjusted its insurance-sector models in response to Q3 results, per the analyst note. The analyst highlighted that while property and casualty trends point to a slowing cycle into 2026, life-insurance earnings were substantially higher than suggested by share-price reactions.
Earlier, Primerica, Inc. (NYSE:PRI) reported adjusted net operating income of $206 million for the third quarter of 2025, up 7% year over year, with an 11% increase in EPS to $6.33. The Investment and Savings Products (ISP) category generated record sales of $3.7 billion, up by 28% YoY, and net inflows of $363 million, while customer assets grew by 14% to $127 billion. The management anticipates that ISP sales will climb by about 20% over the course of 2025 due to solid equity markets and steady momentum.
Furthermore, on November 19, 2025, Business Wire reported that Primerica, Inc. (NYSE:PRI)’s Board of Directors had authorized a $475 million share repurchase program that would run until December 31, 2026. According to the business, repurchases could take place through block trades, open-market transactions, or privately negotiated agreements, depending on the situation of the market and legal requirements. Primerica, Inc. (NYSE:PRI) stressed that the authorization was motivated by financial strength in all areas. As of September 30, 2025, the company declared $967 billion in Term Life face amount in force, including continuous contributions from its fee-based investing operations.
Primerica, Inc. (NYSE:PRI) provides financial services to middle-income households in the United States and Canada. The business distributes financial products on behalf of third parties, including annuities, mutual funds, and life insurance.
7. Principal Financial Group, Inc. (NASDAQ:PFG)
Number of Hedge Fund Holders: 34
Analysts’ Upside Potential as of December 4: 2.41%
Principal Financial Group, Inc. (NASDAQ:PFG) is among the Best Insurance Stocks.
Morgan Stanley increased its price objective for Principal Financial Group (NASDAQ:PFG) from $83 to $87 on November 17, 2025, while maintaining an Underweight rating, as reported by TheFly. The adjustment came after Q3 results and new insurance-sector models. The firm stated that the life insurance earnings were higher than share-price reactions suggested, while the property and liability market is likely to undergo a softening cycle by 2026.
Principal Financial Group, Inc. (NASDAQ:PFG) offers an attractive long-term dividend growth potential with $1.8 trillion in assets under administration and a 16-year streak of dividend growth. The company expects 9-12% annual non-GAAP EPS growth, driven by strong Q3 2025 performance and cautious capital allocation. The management has expressed optimism in the $1.4-$1.7 billion capital return and full-year enterprise financial targets, which include $700 million to $1 billion in share repurchases.
Principal Financial Group, Inc. (NASDAQ:PFG), a financial services firm, has been in business for more than 145 years, employs close to 20,000 workers across 27 countries, and has extensive knowledge in 401(k)/403(b) administration, annuities, disability insurance, and retirement solutions. It continues to benefit from consistent growth in assets under management and a strong global clientele.
6. Jackson Financial Inc. (NYSE:JXN)
Number of Hedge Fund Holders: 34
Analysts’ Upside Potential as of December 4: 7.49%
Jackson Financial Inc. (NYSE:JXN) is among the Best Insurance Stocks.
According to TheFly on November 17, 2025, Morgan Stanley reduced their price objective for Jackson Financial Inc. (NYSE:JXN) from $106 to $101 while maintaining an Equal Weight rating. The analyst noted a slowing property and casualty cycle into 2026 and pointed out that life insurance earnings announcements were stronger than the market reaction indicated.
Jackson Financial Inc. (NYSE:JXN) is the leading provider of variable annuities in the United States, providing a complex but sticky retirement plan that mixes investment and life insurance. These annuities foster long-term client relationships because they are challenging to leave once registered. The firm’s exceptional service and strong advisor incentives have helped it maintain its market leadership despite the product’s hefty fees.
Jackson Financial Inc. (NYSE:JXN) returned $210 million in capital to shareholders in Q3, bringing the year-to-date capital return to $657 million. It expanded its share repurchase authorization by $1 billion, with a projected total 2025 capital return of more than $800 million.
Jackson Financial Inc. (NYSE:JXN) is a holding company for investments. The company is divided into the following segments: Closed Life and Annuity Blocks, Institutional Products, and Retail Annuities.
5. MetLife, Inc. (NYSE:MET)
Number of Hedge Fund Holders: 39
Analysts’ Upside Potential as of December 4: 19.18%
MetLife, Inc. (NYSE: MET) is among the Best Insurance Stocks.
As of December 5, analyst opinions on MetLife, Inc. (NYSE: MET) are modestly positive, with more than 60% of analysts assigning it a Buy or equivalent rating. The consensus 1-year median price target is $93, implying over 18%-19% upside.
MetLife, Inc. (NYSE: MET) announced Q4 2025 preferred stock dividends across three series, according to Business Wire on November 17, 2025. The business announced a quarterly dividend of $0.33 per share on its Series A preferred stock (MET PRA), which is non-cumulative and has a $25 liquidation preference.
Moreover, MetLife, Inc. (NYSE: MET) disclosed $296.875 per share on its 4.75% Series F preferred stock (MET PRF), which is equivalent to $0.296875 per depositary share, and $351.5625 per share on its 5.625% Series E preferred stock (MET PRE), which is equivalent to $0.3515625 per depositary share. All dividends will be paid on December 15, 2025, to shareholders of record as of Friday, November 28, 2025, due to the record date falling on Sunday, November 30, 2025.
On December 1, 2025, Business Wire reported that MetLife, Inc. (NYSE:MET) had completed the transfer of $10 billion in variable annuity risk to Talcott Resolution Life Insurance Company. The transaction will result in foregone annual adjusted earnings of ~$100 million, offset by ~$45 million in annual hedge cost savings. The transaction expedites the run-off of conventional U.S. Retail segment businesses and lowers risk exposure within MetLife Holdings. MetLife Investment Management has signed new agreements with Talcott to manage around $6 billion in assets.
MetLife, Inc. (NYSE:MET) is one of the major life insurers in the United States by assets, providing an extensive portfolio of life insurance and annuity products.
4. Unum Group (NYSE:UNM)
Number of Hedge Fund Holders: 42
Analysts’ Upside Potential as of December 4: 24.08%
Unum Group (NYSE:UNM) is among the Best Insurance Stocks.
On December 4, 2025, Unum Group (NYSE:UNM) announced that its board had approved a new $1 billion share repurchase program, effective January 1, 2026. All buybacks will switch to the new authorization after the present program expires on December 31, 2025. The company stated that, depending on the state of the market, repurchases could be carried out through private agreements, open-market transactions, or predetermined trading strategies. The program may be changed or discontinued at any moment by the board.
Earlier on November 14, 2025, Unum Group (NYSE:UNM) stated that it had completed a $300 million senior notes offering due in 2035 with a 5.250% annual coupon. The firm’s $275 million 3.875% senior notes due in 2025, which matured on November 5, 2025, will be repaid with net proceeds. It will be utilized for general company operations. According to the company, the issuance provides liquidity and balance-sheet flexibility as it continues to plan for long-term capital needs.
Unum Group (NYSE:UNM) has expressed intentions to return around $1.3 billion to shareholders in 2025, backed by solid premiums, a near-20% ROE, and more than $2 billion in holding-company liquidity. The management cited reserve actions totaling $478.5 million pretax, 4% adjusted premium growth, and strong contributions from Unum US, Colonial Life, and International. The company plans to conclude 2025 with an RBC ratio above 425% and premium growth comparable to the previous year.
Unum Group (NYSE:UNM) provides group and individual income protection insurance solutions in the United States, the United Kingdom, Poland, and other countries.
3. Globe Life Inc. (NYSE:GL)
Number of Hedge Fund Holders: 42
Analysts’ Upside Potential as of December 4: 28.80%
Globe Life Inc. (NYSE:GL) is among the Best Insurance Stocks.
As of December 5, analyst opinions on Globe Life Inc. (NYSE:GL) are broadly positive, with around two-thirds of analysts assigning it a Buy or equivalent rating. The consensus 1-year median price target is $168.50, implying over 28% upside.
TheFly reported on November 17, 2025, that Morgan Stanley analyst Bob Huang reduced the firm’s price objective for Globe Life Inc. (NYSE:GL) to $177 from $179. He maintains an Overweight rating for the stock. The firm revised its insurance-sector models in response to the Q3 results. According to the analyst’s note, life insurance earnings outperformed share price changes. Furthermore, according to Morgan Stanley, the property and casualty market is about to start a softening cycle in 2026.
Globe Life Inc. (NYSE:GL) reported an increase in premium revenue in the last quarter. The firm has more than 17,500 exclusive agents and aims to have more than 28,000 agents and $1.4 billion in annual sales by 2030. Investments in technology, such as recruiting CRM and a new worksite enrollment platform, are increasing productivity throughout the main distribution channels. American Income life premiums increased by 5%, Liberty National’s margin grew by 57%, and Family Heritage health insurance premiums climbed by 10% with 9% agent growth in the most recent quarter.
Globe Life Inc. (NYSE:GL) also stated that for the full year 2025, it anticipates net operating earnings per diluted share to be in the $14.40 to $14.60 range, reflecting a 17% increase at the midpoint. The business projects an 11% rise in net operating earnings per diluted share for the year, excluding assumption adjustments in 2024 and 2025.
Globe Life Inc. (NYSE:GL) is a holding company that, through its subsidiaries, offers an extensive range of life and supplemental health insurance products, as well as annuities, to a broad customer base.
2. Lincoln National Corporation (NYSE:LNC)
Number of Hedge Fund Holders: 44
Analysts’ Upside Potential as of December 4: 1.08%
Lincoln National Corporation (NYSE:LNC) is one of the Best Insurance Stocks.
As of December 5, Lincoln National Corporation (NYSE:LNC) has posted strong year-to-date returns of 35%. That said, analyst opinions on the stock are cautious, with the consensus 1-year median price target of $43.00 implying a meager 1% upside.
On November 13, 2025, Lincoln National Corporation (NYSE:LNC) reported that its Board of Directors declared a quarterly cash dividend of $0.45 per share on its common stock. The dividend will be paid on February 2, 2026, to shareholders of record as of January 12, 2026.
Separately, on November 17, 2025, the firm revealed that John Muething had been appointed Head of Investor Relations and Vice President, Financial Planning and Analysis (FP&A) at Lincoln National Corporation (NYSE:LNC). Lincoln National Corporation (NYSE:LNC) noted that Muething’s expanded role aims to unify financial planning and investor relations responsibilities. Vice President Scott West will continue to oversee daily IR operations and submit reports to Muething.
Lincoln National Corporation (NYSE:LNC) has been working to strengthen its balance sheet, capital position, and sustainable growth. Operating income climbed for the fifth consecutive quarter, annuity sales were high, and the profitability of the Life division increased in the third quarter.
Lincoln National Corporation (NYSE:LNC) operates multiple insurance and retirement services. The company reported $347 billion in end-of-period account balances, net of reinsurance, as of September 30, 2025, and served almost 17 million clients as of December 31, 2024.
1. Prudential Financial, Inc. (NYSE:PRU)
Number of Hedge Fund Holders: 44
Analysts’ Upside Potential as of December 4: 7.03%
Prudential Financial, Inc. (NYSE:PRU) is among the Best Insurance Stocks.
Bloomberg reported on December 3, 2025, that Prudential Financial, Inc. (NYSE:PRU) is considering selling approximately one-third of its ownership in the South African financial services firm Alexforbes, which is worth 10.7 billion rand ($627 million). The Bloomberg story also noted that while the company declined to comment on market speculation, it informed African Rainbow Capital and Alexforbes about the possible disposal, according to people familiar with the discussions. In an emailed response, Prudential stated that it “regularly evaluates strategic opportunities to ensure they are aligned with our long-term strategy.”
On November 18, 2025, Prismic Life, funded by Prudential Financial, Inc. (NYSE:PRU) and Warburg Pincus, completed a $1.3 billion capital raise to expand its Bermuda-based reinsurance business. The funding will allow Prismic Life Reinsurance, Ltd. and Prismic Life Reinsurance International, Ltd. to execute their multi-year business strategy, expand access to Prudential Financial, Inc. (NYSE:PRU)’s products, and develop life and annuity reinsurance.
Prudential Financial, Inc. (NYSE:PRU) CEO Andy Sullivan stressed the importance of reinsurance in international life insurance markets. It is anticipated that the funds will distribute roughly $15 billion among PGIM and Warburg Pincus-managed public, private, and alternative credit assets.
Separately, Prudential Financial, Inc. (NYSE:PRU) announced on December 3, 2025, that Matthew (Matt) Armas would take over as Chief Investment Officer on March 12, 2026. Timothy Schmidt, who will retire from Prudential in 2026 after 16 years, will be replaced by Armas. He will serve as an advisor until August to facilitate a smooth transition.
Prudential Financial, Inc. (NYSE:PRU) is one of the leading US life insurers, providing annuities, life insurance, and asset management services.
While we acknowledge the potential of PRU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PRU and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. 9 Best Life Insurance Stocks to Buy Now is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
