Sectors & IndustriesFinancial ServicesInsurance - Specialty

Best Specialty Insurance Stocks to Buy Now (2025)

Top specialty insurance stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best specialty insurance stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best specialty insurance stocks to buy right now are:

First American Financial (NYSE:FAF) is the #1 top specialty insurance stock out of 20 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for First American Financial (NYSE:FAF) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: B.

First American Financial (NYSE:FAF) has a Due Diligence Score of 39, which is 10 points higher than the specialty insurance industry average of 29.

FAF passed 14 out of 38 due diligence checks and has average fundamentals. First American Financial has seen its stock return 3.94% over the past year, underperforming other specialty insurance stocks by -4 percentage points.

First American Financial has an average 1 year price target of $74.50, an upside of 10.35% from First American Financial's current stock price of $67.51.

First American Financial stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering First American Financial, 0% have issued a Strong Buy rating, 50% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Hippo Holdings (NYSE:HIPO) is the #2 top specialty insurance stock out of 20 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Hippo Holdings (NYSE:HIPO) is: Value: C, Growth: A, Momentum: B, Sentiment: B, Safety: C, Financials: C, and AI: C.

Hippo Holdings (NYSE:HIPO) has a Due Diligence Score of 29, which is equal to the specialty insurance industry average of 29.

HIPO passed 10 out of 33 due diligence checks and has average fundamentals. Hippo Holdings has seen its stock return 97.62% over the past year, overperforming other specialty insurance stocks by 89 percentage points.

Hippo Holdings has an average 1 year price target of $34.25, a downside of -8.15% from Hippo Holdings's current stock price of $37.29.

Hippo Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Hippo Holdings, 50% have issued a Strong Buy rating, 25% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Tiptree (NASDAQ:TIPT) is the #3 top specialty insurance stock out of 20 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Tiptree (NASDAQ:TIPT) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: A.

Tiptree (NASDAQ:TIPT) has a Due Diligence Score of 29, which is equal to the specialty insurance industry average of 29.

TIPT passed 10 out of 38 due diligence checks and has average fundamentals. Tiptree has seen its stock return 34.09% over the past year, overperforming other specialty insurance stocks by 26 percentage points.

Out of 12 specialty insurance stocks that have issued dividends in the past year, the 3 specialty insurance stocks with the highest dividend yields are:

Amerisafe (NASDAQ:AMSF) has an annual dividend yield of 10.26%, which is 8 percentage points higher than the specialty insurance industry average of 2.6%. Amerisafe's dividend payout is not stable, having dropped more than 10% ten times in the last 10 years. Amerisafe's dividend has shown consistent growth over the last 10 years.

Amerisafe's dividend payout ratio of 170.6% indicates that its high dividend yield might not be sustainable for the long-term.

Investors Title Co (NASDAQ:ITIC) has an annual dividend yield of 6.22%, which is 4 percentage points higher than the specialty insurance industry average of 2.6%. Investors Title Co's dividend payout is not stable, having dropped more than 10% eight times in the last 10 years. Investors Title Co's dividend has shown consistent growth over the last 10 years.

Investors Title Co's dividend payout ratio of 90.2% indicates that its high dividend yield might not be sustainable for the long-term.

First American Financial (NYSE:FAF) has an annual dividend yield of 3.2%, which is 1 percentage points higher than the specialty insurance industry average of 2.6%. First American Financial's dividend payout is stable, having never dropped by more than 10% in the last 10 years. First American Financial's dividend has shown consistent growth over the last 10 years.

First American Financial's dividend payout ratio of 118% indicates that its dividend yield might not be sustainable for the long-term.

Specialty insurance stocks were down -0.55% in the last day, and up 0.66% over the last week.

We couldn't find a catalyst for why specialty insurance stocks are down.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued specialty insurance stocks right now are:

Nmi Holdings (NASDAQ:NMIH) is the most undervalued specialty insurance stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Nmi Holdings has a valuation score of 43, which is 9 points higher than the specialty insurance industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Nmi Holdings's stock has dropped -0.13% in the past year. It has underperformed other stocks in the specialty insurance industry by -9 percentage points.

Axis Capital Holdings (NYSE:AXS) is the second most undervalued specialty insurance stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Axis Capital Holdings has a valuation score of 57, which is 23 points higher than the specialty insurance industry average of 34. It passed 4 out of 7 valuation due diligence checks.

Axis Capital Holdings's stock has gained 29.87% in the past year. It has overperformed other stocks in the specialty insurance industry by 21 percentage points.

Essent Group (NYSE:ESNT) is the third most undervalued specialty insurance stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Essent Group has a valuation score of 43, which is 9 points higher than the specialty insurance industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Essent Group's stock has gained 2.89% in the past year. It has underperformed other stocks in the specialty insurance industry by -6 percentage points.

47.06% of specialty insurance stocks rated by analysts are a buy right now. On average, analysts expect specialty insurance stocks to rise by 12.07% over the next year.

0% of specialty insurance stocks have a Zen Rating of A (Strong Buy), 20% of specialty insurance stocks are rated B (Buy), 65% are rated C (Hold), 10% are rated D (Sell), and 5% are rated F (Strong Sell).