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 insurance 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).
15. eHealth Inc (NASDAQ:EHTH)
Number of Hedge Fund Holders In Q4 2024: 26
eHealth Inc (NASDAQ:EHTH) is the largest private health insurance marketplace.
The stock is up significantly so far in 2025 due to solid results during its Annual Enrollment Period (AEP). It led eHealth to raise its fiscal year 2024 revenue guidance to $500-520 million from $470-495 million and improve its GAAP net loss outlook to a range of $12 million loss to $3 million profit, compared to the prior forecast of a $36.5-22 million loss. Adjusted EBITDA guidance was also significantly increased to $40-55 million from $7.5-25 million.
Moreover, the company has been making an operational turnaround that is also helping financial metrics make an improvement, along with higher enrollment levels.
Its Q4 2024 earnings report is scheduled for release on February 26, 2025.
The consensus price target of $6.38 implies 38.57% downside.
EHTH is up 7.45% year-to-date.
14. Aon PLC (NYSE:AON)
Number of Hedge Fund Holders In Q4 2024: 59
Aon PLC (NYSE:AON) is a professional services firm that provides risk management, insurance brokerage, and human capital consulting.
The stock is up significantly so far in 2025 as the company’s top line has been surging after the NFP acquisition closed in April 2024. It also posted Q4 2024 that beat analyst expectations with adjusted EPS of $4.42 versus expected $4.24.
Analysts have become increasingly bullish, with the consensus shifting to “Moderate Buy” and Keefe Bruyette raising their price target to $414 on February 5, 2025.
The consensus price target of $386.21 implies 0.85% downside.
AON is up 8.66% year-to-date.
13. Marsh & McLennan Companies Inc (NYSE:MMC)
Number of Hedge Fund Holders In Q4 2024: 69
Marsh & McLennan Companies Inc (NYSE:MMC) is a professional services company that provides insurance brokerage and other related services.
The stock is up significantly so far in 2025 after it announced strong Q4 and full-year 2024 results. Full-year revenue grew 7% and adjusted EPS grew 10% to $8.8. It had its 17th consecutive year of reported margin expansion.
In addition, the company’s $7.75 billion acquisition of McGriff Insurance Services closed in late 2024. This added $1.3 billion in revenues and an estimated $400 million to $500 million in EBITDA to MMC’s MMA segment.
Marsh & McLennan declared a quarterly dividend of $0.815 per share, payable on February 14, 2025.
The consensus price target of $230.44 implies 0.17% upside.
MMC is up 8.69% year-to-date.
12. International General Insurance Holdings Ltd (NASDAQ:IGIC)
Number of Hedge Fund Holders In Q4 2024: 6
International General Insurance Holdings Ltd (NASDAQ:IGIC) is a specialty insurance and reinsurance company.
The stock is up significantly so far in 2025 as Q3 2024 financial results showed strong performance with gross written premiums of $205.6 million. This is a 3% increase from Q3 2023 while maintaining a healthy combined ratio of 81.2%.
Moreover, the stock is priced pretty cheap and trades less than industry peers. Buybacks and improved profitability metrics could take it much higher from here.
The consensus price target of $28 implies 7.86% upside.
IGIC is up 9.13% year-to-date.
11. 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.
BRO is up 9.65% year-to-date.
10. Globe Life Inc (NYSE:GL)
Number of Hedge Fund Holders In Q4 2024: 43
Globe Life Inc (NYSE:GL) is an insurance holding company that provides life and supplemental health insurance products and annuities to middle-income families.
The stock is up significantly so far in 2025 after solid Q4 2025 earnings results. It posted net income of $3.01 per diluted share and net operating income of $3.14 per share. Analysts upped their price targets on this stock after its earnings results, especially after it announced a new $1.8 billion share repurchase authorization, replacing the previous $1.3 billion program.
It also announced plans to acquire a 200,000-square-foot office building in McKinney, Texas, with room for future expansion. Globe Life projected net operating income between $13.45 to $14.05 per diluted share for 2025.
The consensus price target of $135.5 implies 10.6% upside.
GL is up 10.16% year-to-date.
9. Palomar Holdings Inc (NASDAQ:PLMR)
Number of Hedge Fund Holders In Q4 2024: 20
Palomar Holdings Inc (NASDAQ:PLMR) is a specialty insurance company that provides property and casualty insurance products.
The stock is up significantly so far in 2025 after solid Q4 2024 earnings. Net income increased 35% to $35 million and gross written premiums grew 23.3% to $373.3 million. Adjusted net income grew 47.5% to $41.3 million.
Guidance is also solid, with management projecting adjusted net income between $180 million and $192 million. It anticipates mid-to-high teens growth in earthquake premiums. Moreover, crop insurance premiums are expected to reach $200 million.
Last month, the stock rose following the completion of a $25 million First Indemnity of America Insurance acquisition.
The consensus price target of $127.33 implies 6.94% upside.
PLMR is up 12.69% year-to-date.
8. Progressive Corp (NYSE:PGR)
Number of Hedge Fund Holders In Q4 2024: 100
Progressive Corp (NYSE:PGR) is the second-largest auto insurer in the United States that provides various types of specialty property-casualty insurance products.
The stock is up significantly so far in 2025 as it reported solid January 2025 financial results. The company reported net income of $1.117 billion, up 59% compared to January 2024. Net premiums written grew by 18% to $5.56 billion and net premiums earned 19% to $6.04 billion. As such, the combined ratio improved to 84.1 from 87.3.
Price targets have been raised after its financial results and institutional investors have shown a lot of interest in the stock. The insurance industry has been benefiting from favorable conditions such as rising premiums and better loss ratios due to improved risk management practices, so the broader market is also cooperating.
The consensus price target of $276.12 implies 3.81% upside.
PGR is up 13.23% year-to-date.
7. Arthur J. Gallagher & Co (NYSE:AJG)
Number of Hedge Fund Holders In Q4 2024: 77
Arthur J. Gallagher & Co (NYSE:AJG) is an insurance brokerage, risk management, and consulting services company.
The stock is up significantly so far in 2025 as AJG reported adjusted earnings per share (EPS) of $2.51 for Q4 2024. This exceeded analysts’ expectations of $2.06 by 22.3%. Revenue for the quarter was $2.68 billion, up 12% year-over-year, though slightly below the forecast of $2.71 billion.
Moreover, the adjusted EBITDA margin expanded by 145 basis points to 31.4%. The company also completed several acquisitions this year. The acquisition of Assured Partners for $12.45 billion is expected to close in Q1 2025.
On top of all that, AJG announced a dividend increase to $0.65 starting on the 21st of March.
The consensus price target of $307 implies 5.62% downside.
AJG is up 14.69% year-to-date.
6. Lincoln National Corp (NYSE:LNC)
Number of Hedge Fund Holders In Q4 2024: 41
Lincoln National Corp (NYSE:LNC) is a Fortune 200 holding company that operates in the insurance and investment management sectors.
The stock is up significantly so far in 2025 due to a solid Q4 2024 report. Lincoln reported fourth-quarter net income of $1.7 billion ($9.63 per diluted share), driven by a $1.2 billion pre-tax gain from market risk benefits due to rising interest rates and a $587 million gain from changes in the fair value of derivatives related to its Fortitude Re reinsurance transaction.
Moreover, adjusted operating income was $332 million and beat consensus estimates. Group Protection and Annuities segments performed exceptionally well, with record sales and earnings growth. Annuities saw a 14% increase in operating income and the highest sales since 2019.
Risk-based capital ratio exceeded 430%, so the financial health looks quite strong as well. Plus, Lincoln declared high-yield dividends on its preferred stock: a semi-annual dividend of $1,156.25 per share for Series C (9.25% yield) and a quarterly dividend of $562.50 per share for Series D (9.00% yield).
The consensus price target of $37.1 implies 1.19% downside.
LNC is up 20.14% year-to-date.
5. SelectQuote Inc (NYSE:SLQT)
Number of Hedge Fund Holders In Q4 2024: 20
SelectQuote Inc (NYSE:SLQT) is a direct-to-consumer platform that sells insurance policies and healthcare services.
The stock is up significantly so far in 2025 after it reported great Q2 FY2025 earnings. Revenue grew 19% year-over-year to $481.1 million. Net income also increased significantly from $19.4 million to $53.2 million. Adjusted EBITDA grew 30% year-over-year to $87.5 million, and The Senior segment achieved a 39% EBITDA margin, with the Healthcare Services segment seeing SelectRx membership grow 54%.
The revenue forecast was increased from $1.5 billion to $1.575 billion and adjusted EBITDA guidance was raised from $115 million to $140 million. Plus, it secured a $350 million investment from Bain Capital, Morgan Stanley Private Credit, and Newlight Partners.
The consensus price target of $4.5 implies 1.42% downside.
SLQT is up 22.85% year-to-date.
4. Brighthouse Financial Inc (NASDAQ:BHF)
Number of Hedge Fund Holders In Q4 2024: 25
Brighthouse Financial Inc (NASDAQ:BHF) provides life insurance and annuity products.
The stock is up significantly so far in 2025 as there are reports from the Financial Times that the company is exploring a potential sale. It was revealed that Brighthouse is working with advisors from Goldman Sachs and Wells Fargo to evaluate offers, with a preference for an outright buyer rather than raising minority equity.
Moreover, Brighthouse reported robust financial results for Q4 2024. Net income came in at $646 million compared to a net loss of $942 million in Q4 2023. Adjusted earnings also exceeded analyst expectations and came in at $352 million.
The company ended up achieving record life insurance sales of $120 million and strong annuity sales of $10 billion for 2024. It also reduced outstanding shares significantly last year through buybacks and an additional $25 million was repurchased early this year.
The consensus price target of $63.14 implies 6.21% upside.
BHF is up 23.75% year-to-date.
3. Citizens Inc (NYSE:CIA)
Number of Hedge Fund Holders In Q4 2024: 11
Citizens Inc (NYSE:CIA) offers whole life, endowment, and final expense insurance products.
The stock is up significantly so far in 2025 as it reported a 75% increase in total insurance issued year-over-year to $307.6 million. Total revenues rose 4% to $61.7 million after direct first-year life and accident & health premiums rose 70%.
It also expanded its agent network by 86% since December 2023 and contributed to solid sales growth. It also maintained a positive net income of $2.8 million for the first quarter and increased its book value per Class A share by 35% to $4.16.
CIA is up 29.18% year-to-date.
2. GoHealth Inc (NASDAQ:GOCO)
Number of Hedge Fund Holders In Q4 2024: 7
GoHealth Inc (NASDAQ:GOCO) is a health insurance marketplace and a Medicare-focused digital health company.
The stock is up significantly so far in 2025 as investors are optimistic about its upcoming earnings report on February 27, 2025. Analysts expect earnings of $1.16 per share and revenue of $326.56 million.
In Q3 2024, GoHealth reported net income of $15.4 million compared to a $56.2 million loss in the prior year. It also reduced its direct operating costs per submission by 11%.
The consensus price target of $13 implies 27.54% downside.
GOCO is up 35.47% year-to-date.
1. Root Inc (NASDAQ:ROOT)
Number of Hedge Fund Holders In Q4 2024: 16
Root Inc (NASDAQ:ROOT) is a tech-driven insurance company.
The stock is up significantly so far in 2025 as it successfully refinanced its $300 million term loan facility with BlackRock late last year. This reduced its principal to $200 million and lowered interest rates by 300 basis points (to SOFR + 600 basis points). This move is expected to cut interest expenses by approximately 50% on a run-rate basis.
Moreover, Root expanded its auto insurance services to Minnesota in January 2025. It increased its coverage to over 77% of the U.S. population and has benefited from broader market momentum.
Investors are optimistic about its Q4 2024 earnings release on February 26, 2025.
The consensus price target of $75 implies 25.16% downside.
ROOT is up 38.04% year-to-date.
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READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
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