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Best Insurance Stocks to Buy Now (2022)

Top insurance stocks in 2022 ranked by overall Zen Score. See the best insurance stocks to buy now, according to analyst forecasts for the insurance brokers industry.

According to Zen Score, the 3 best insurance stocks to buy right now are:

Willis Towers Watson (NASDAQ:WTW) is the top insurance stock with a Zen Score of 55, which is 19 points higher than the insurance industry average of 36. It passed 20 out of 38 due diligence checks and has strong fundamentals. Willis Towers Watson has seen its stock lose -13.56% over the past year, underperforming other insurance stocks by -6 percentage points.

Willis Towers Watson has an average 1 year price target of $243.38, an upside of 21.12% from Willis Towers Watson's current stock price of $200.94.

Willis Towers Watson stock has a consensus Hold recommendation according to Wall Street analysts. Of the 8 analysts covering Willis Towers Watson, 12.5% have issued a Strong Buy rating, 12.5% have issued a Buy, 75% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Arthur J Gallagher & Co (NYSE:AJG) is the second best insurance stock with a Zen Score of 49, which is 13 points higher than the insurance industry average of 36. It passed 18 out of 38 due diligence checks and has strong fundamentals. Arthur J Gallagher & Co has seen its stock return 15.18% over the past year, overperforming other insurance stocks by 23 percentage points.

Arthur J Gallagher & Co has an average 1 year price target of $203.00, an upside of 18.56% from Arthur J Gallagher & Co's current stock price of $171.22.

Arthur J Gallagher & Co stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Arthur J Gallagher & Co, 60% have issued a Strong Buy rating, 10% have issued a Buy, 30% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Fanhua (NASDAQ:FANH) is the third best insurance stock with a Zen Score of 46, which is 10 points higher than the insurance industry average of 36. It passed 18 out of 38 due diligence checks and has strong fundamentals. Fanhua has seen its stock lose -58.31% over the past year, underperforming other insurance stocks by -51 percentage points.

Fanhua has an average 1 year price target of $14.00, an upside of 178.88% from Fanhua's current stock price of $5.02.

Fanhua stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Fanhua, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 6 insurance stocks that have issued dividends in the past year, the 3 insurance stocks with the highest dividend yields are:

Erie Indemnity Co (NASDAQ:ERIE) has an annual dividend yield of 1.96%, which is the same as the insurance industry average of 1.95%. Erie Indemnity Co's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Erie Indemnity Co's dividend has shown consistent growth over the last 10 years.

Erie Indemnity Co's dividend payout ratio of 69.1% indicates that its dividend yield is sustainable for the long-term.

Willis Towers Watson (NASDAQ:WTW) has an annual dividend yield of 1.62%, which is the same as the insurance industry average of 1.95%. Willis Towers Watson's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Willis Towers Watson's dividend has shown consistent growth over the last 10 years.

Willis Towers Watson's dividend payout ratio of 11.6% indicates that its dividend yield is sustainable for the long-term.

Marsh & Mclennan Companies (NYSE:MMC) has an annual dividend yield of 1.47%, which is the same as the insurance industry average of 1.95%. Marsh & Mclennan Companies's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Marsh & Mclennan Companies's dividend has shown consistent growth over the last 10 years.

Marsh & Mclennan Companies's dividend payout ratio of 31.9% indicates that its dividend yield is sustainable for the long-term.

Insurance stocks were down -0.41% in the last day, and down -0.54% over the last week.

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

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

Fanhua (NASDAQ:FANH) is the most undervalued insurance stock based on WallStreetZen's Valuation Score. Fanhua has a valuation score of 71, which is 36 points higher than the insurance industry average of 35. It passed 5 out of 7 valuation due diligence checks.

Fanhua's stock has dropped -58.31% in the past year. It has underperformed other stocks in the insurance industry by -51 percentage points.

Crawford & Co (NYSE:CRD.A) is the second most undervalued insurance stock based on WallStreetZen's Valuation Score. Crawford & Co has a valuation score of 71, which is 36 points higher than the insurance industry average of 35. It passed 5 out of 7 valuation due diligence checks.

Crawford & Co's stock has dropped -36.01% in the past year. It has underperformed other stocks in the insurance industry by -28 percentage points.

Willis Towers Watson (NASDAQ:WTW) is the third most undervalued insurance stock based on WallStreetZen's Valuation Score. Willis Towers Watson has a valuation score of 57, which is 22 points higher than the insurance industry average of 35. It passed 4 out of 7 valuation due diligence checks.

Willis Towers Watson's stock has dropped -13.56% in the past year. It has underperformed other stocks in the insurance industry by -6 percentage points.