Sectors & IndustriesFinancial ServicesInsurance - Specialty

Best Specialty Insurance Stocks to Buy Now (2025)

Top specialty insurance stocks in 2025 ranked by overall Due Diligence Score. See the best specialty insurance stocks to buy now, according to analyst forecasts for the insurance - specialty industry.

According to Due Diligence Score, the 3 best specialty insurance stocks to buy right now are:

Axis Capital Holdings (NYSE:AXS) is the top specialty insurance stock with a Due Diligence Score of 54, which is 20 points higher than the specialty insurance industry average of 34. It passed 19 out of 38 due diligence checks and has strong fundamentals. Axis Capital Holdings has seen its stock return 61.82% over the past year, overperforming other specialty insurance stocks by 35 percentage points.

Axis Capital Holdings has an average 1 year price target of $99.25, an upside of 13.02% from Axis Capital Holdings's current stock price of $87.82.

Axis Capital Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Axis Capital Holdings, 62.5% have issued a Strong Buy rating, 12.5% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Mgic Investment (NYSE:MTG) is the second best specialty insurance stock with a Due Diligence Score of 49, which is 15 points higher than the specialty insurance industry average of 34. It passed 17 out of 38 due diligence checks and has strong fundamentals. Mgic Investment has seen its stock return 23.37% over the past year, underperforming other specialty insurance stocks by -3 percentage points.

Mgic Investment has an average 1 year price target of $26.50, an upside of 11.81% from Mgic Investment's current stock price of $23.70.

Mgic Investment stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Mgic Investment, 33.33% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 16.67% have issued a Sell rating, and 0% have issued a Strong Sell.

Assurant (NYSE:AIZ) is the third best specialty insurance stock with a Due Diligence Score of 48, which is 14 points higher than the specialty insurance industry average of 34. It passed 17 out of 38 due diligence checks and has strong fundamentals. Assurant has seen its stock return 24.47% over the past year, underperforming other specialty insurance stocks by -2 percentage points.

Assurant has an average 1 year price target of $232.17, an upside of 13.4% from Assurant's current stock price of $204.74.

Assurant stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Assurant, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 14 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 8.76%, which is 6 percentage points higher than the specialty insurance industry average of 2.88%. Amerisafe's dividend payout is not stable, having dropped more than 10% nine times in the last 10 years. Amerisafe's dividend has shown consistent growth over the last 10 years.

Amerisafe's dividend payout ratio of 153.7% 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 7.07%, which is 4 percentage points higher than the specialty insurance industry average of 2.88%. Investors Title Co's dividend payout is not stable, having dropped more than 10% seven 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 38.6% indicates that its high dividend yield is sustainable for the long-term.

First American Financial (NYSE:FAF) has an annual dividend yield of 3.6%, which is 1 percentage points higher than the specialty insurance industry average of 2.88%. 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 239.3% indicates that its dividend yield might not be sustainable for the long-term.

Specialty insurance stocks were up 2.27% in the last day, and down -0.44% over the last week.

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

Based on WallStreetZen's Valuation Score, the 3 most undervalued specialty insurance stocks right now are:

Enact Holdings (NASDAQ:ACT) is the most undervalued specialty insurance stock based on WallStreetZen's Valuation Score. Enact Holdings has a valuation score of 71, which is 34 points higher than the specialty insurance industry average of 37. It passed 5 out of 7 valuation due diligence checks.

Enact Holdings's stock has gained 14.58% in the past year. It has underperformed other stocks in the specialty insurance industry by -12 percentage points.

Axis Capital Holdings (NYSE:AXS) is the second most undervalued specialty insurance stock based on WallStreetZen's Valuation Score. Axis Capital Holdings has a valuation score of 71, which is 34 points higher than the specialty insurance industry average of 37. It passed 5 out of 7 valuation due diligence checks.

Axis Capital Holdings's stock has gained 61.82% in the past year. It has overperformed other stocks in the specialty insurance industry by 35 percentage points.

ICC Holdings (NASDAQ:ICCH) is the third most undervalued specialty insurance stock based on WallStreetZen's Valuation Score. ICC Holdings has a valuation score of 71, which is 34 points higher than the specialty insurance industry average of 37. It passed 5 out of 7 valuation due diligence checks.

ICC Holdings's stock has gained 54.55% in the past year. It has overperformed other stocks in the specialty insurance industry by 28 percentage points.