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The 5 Best Insurance Stocks Now | 2023 List Of All 192

Updated on September 19th, 2023 by Bob Ciura

Insurance companies often produce a high level of profits each year, because they make money in two ways. First, insurance companies collect premium income on the policies they underwrite.

Second, they are able to make money by investing the large sums of accumulated premiums that have not been paid out as claims.

Due to this, insurance companies have been among the most rewarding to own over the past several decades. In fact, many of the Dividend Aristocrats and Dividend Achievers are in the insurance industry.

You can download our Excel spreadsheet list of nearly 200 insurance stocks (with important metrics that matter such as P/E ratios and dividend yields) for free by clicking the link below:


The insurance industry has created many great fortunes. That’s because it’s slow changing and highly profitable, if the business is done well. Investing in insurance stocks is how Shelby Davis made $900 million from $50,000 starting in his late 30’s.

In recent years, the insurance industry (and other parts of the financial sector like banks) have struggled from low interest rates, which narrow the spread between what insurance companies can earn on their invested capital, versus what they pay out in claims.

In turn, higher interest rates would be a positive catalyst for insurance stocks, which would see their net investment income rise.

Still, there are a number of insurers that look attractively priced today that are poised to deliver strong total annual returns over the next five years. This article will rank the top 5 insurance stocks now, in order of expected total annual returns.

Table Of Contents

Best Insurance Stock #5: Hartford Financial Services (HIG)

The Hartford Financial Services Group is a diversified insurer that offers a diverse range of property and casualty (P&C) insurance, group benefits, and mutual fund services to a customer base of individuals and corporations in  the United States, the United Kingdom, continental Europe, and internationally.

Source: Investor Presentation

On July 27th, 2023, Hartford Financial released its second quarter 2023 results for the period ending June 30th, 2023. For the quarter, the company reported net income of $542 million which represents a 23% increase compared with net income of $439 million in the same quarter of 2022. Reported core earnings for the same periods were $588 million ($1.88 core earnings per diluted share) and $716 million ($2.16 core earnings per diluted share), which represents a core EPS decrease of 13% year-over-year.

The quarterly results benefited from strong performances in the Commercial Lines and Group Benefits businesses. The Commercial Lines unit saw higher premiums written, contributing to its success, while the Group Benefits business benefited from improved fully insured ongoing premiums and a solid core earnings margin.

Click here to download our most recent Sure Analysis report on HIG (preview of page 1 of 3 shown below):

Best Insurance Stock #4: American Financial Group (AFG)

American Financial Group is engaged in property and casualty insurance, focusing on specialized commercial products for businesses. In 2021, the company completed the sale of its annuity business for $3.57 billion in cash. In business for over 150 years, the company has regularly increased its quarterly dividend since 2006.

Source: Investor Presentation

AFG reported Q2 2023 earnings on August 2nd, 2023. For the quarter, earnings-per-share was $2.34, above the $1.96 per share that the company reported for the same period in 2022.

The company lowered its guidance to $10.15-$11.15 from the previously estimated $11.00-$12.00. This reduction comes about because of poorer than expected returns in the first half of the year.

Click here to download our most recent Sure Analysis report on AFG (preview of page 1 of 3 shown below):

Best Insurance Stock #3: Equitable Holdings Inc. (EQH)

Equitable Holdings, Inc. is a leading financial services company specializing in Individual retirement, Group Retirement, Investment Management and Research, and Protection Solutions.

Source: Investor Presentation

Equitable Holdings reported Q2 2023 earnings on August 2nd, 2023. For the quarter, the company reported net income of $2.06 per share, compared to the $2.47 in earnings per share in the same period of 2022. The company also declared a dividend of $0.22 per share of common stock.

The company outlined some key growth initiatives during the inaugural investor day in May, as well as provided some meaningful updates to the company’s financial guidance to 2027. Financial targets include $2 billion of cash generation, 12%-15% non GAAP operating earnings per share, and a revised payout ratio of 60%-70% of non-GAAP operating earnings.

Click here to download our most recent Sure Analysis report on EQH (preview of page 1 of 3 shown below):

Best Insurance Stock #2: W.R. Berkley (WRB)

W.R. Berkley is an insurance holding company operating through a wide range of subsidiaries in the commercial casualty insurance segment. The firm primarily operates in two business segments: Insurance and Reinsurance.

Source: Investor Presentation

The insurance segment is the company’s main focus, accounting for 87.4% of the total net premiums written in 2021. The company mainly underwrites commercial insurance businesses across the United States.

On July 20th, 2023, W.R. Berkley announced its Q2 2023 result, posting revenues of $2.55 billion, up 8.3% year-over-year. The diluted earnings-per-share for the quarter was reported at $1.14, beating market’s estimate of by $0.06. The operating income stood at $310.9 million, in-line with last year’s result..

Click here to download our most recent Sure Analysis report on WRB (preview of page 1 of 3 shown below):

Best Insurance Stock #1: Lincoln National Corp. (LNC)

Lincoln National Corporation offers life insurance, annuities, retirement plan services and group protection. The
corporation was founded in 1905 as The Lincoln National Life Insurance Company.

Lincoln National reported second quarter 2023 results on August 2nd, 2023. The company generated net income of $2.94 per share in the second quarter, which compared unfavorably to $4.83 in the second quarter of 2022. Adjusted income from operations equaled $2.02 per share compared to $2.13 in the same prior year period.

Additionally, annuities average account balances shrunk by 1% to $148 billion and group protection insurance premiums grew 6% to $1.3 billion.

Click here to download our most recent Sure Analysis report on LNC (preview of page 1 of 3 shown below):

Final Thoughts

Insurance is often considered to be a boring industry, but investors looking for solid annual returns and dividend income should consider insurance stocks. Many insurance stocks have increased dividends for at least a decade. Some have done so for multiple decades.

Not only has nearly every company on this list exhibited a pattern of steady dividend growth for many years, all have an above-market average dividend yield as well. As a result, these stocks are appealing for income investors.

Investors looking for exposure to this industry could see strong returns from these top 5 insurance stocks.

The following articles contain stocks with very long dividend or corporate histories, ripe for selection for dividend growth investors.

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