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Best Insurance Stocks to Buy Now (2024)

Top insurance stocks in 2024 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:

Marsh & Mclennan Companies (NYSE:MMC) is the top insurance stock with a Zen Score of 52, which is 22 points higher than the insurance industry average of 30. It passed 19 out of 38 due diligence checks and has strong fundamentals. Marsh & Mclennan Companies has seen its stock return 12.93% over the past year, underperforming other insurance stocks by -3 percentage points.

Marsh & Mclennan Companies has an average 1 year price target of $207.33, an upside of 1.1% from Marsh & Mclennan Companies's current stock price of $205.07.

Marsh & Mclennan Companies stock has a consensus Hold recommendation according to Wall Street analysts. Of the 12 analysts covering Marsh & Mclennan Companies, 8.33% have issued a Strong Buy rating, 8.33% have issued a Buy, 66.67% have issued a hold, while 8.33% have issued a Sell rating, and 8.33% have issued a Strong Sell.

Brown & Brown (NYSE:BRO) is the second best insurance stock with a Zen Score of 49, which is 19 points higher than the insurance industry average of 30. It passed 18 out of 38 due diligence checks and has strong fundamentals. Brown & Brown has seen its stock return 34.28% over the past year, overperforming other insurance stocks by 19 percentage points.

Brown & Brown has an average 1 year price target of $87.78, a downside of -0.76% from Brown & Brown's current stock price of $88.45.

Brown & Brown stock has a consensus Buy recommendation according to Wall Street analysts. Of the 9 analysts covering Brown & Brown, 22.22% have issued a Strong Buy rating, 22.22% have issued a Buy, 33.33% have issued a hold, while 22.22% have issued a Sell rating, and 0% have issued a Strong Sell.

Arthur J Gallagher & Co (NYSE:AJG) is the third best insurance stock with a Zen Score of 44, which is 14 points higher than the insurance industry average of 30. It passed 16 out of 38 due diligence checks and has strong fundamentals. Arthur J Gallagher & Co has seen its stock return 15.1% over the past year, underperforming other insurance stocks by -1 percentage points.

Arthur J Gallagher & Co has an average 1 year price target of $255.33, an upside of 1.84% from Arthur J Gallagher & Co's current stock price of $250.72.

Arthur J Gallagher & Co stock has a consensus Hold recommendation according to Wall Street analysts. Of the 6 analysts covering Arthur J Gallagher & Co, 16.67% have issued a Strong Buy rating, 16.67% have issued a Buy, 50% have issued a hold, while 16.67% 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:

Enact Holdings (NASDAQ:ACT) has an annual dividend yield of 1.96%, which is 1 percentage points higher than the insurance industry average of 0.99%.

Enact Holdings's dividend payout ratio of 19.1% indicates that its dividend yield is sustainable for the long-term.

Marsh & Mclennan Companies (NYSE:MMC) has an annual dividend yield of 1.38%, which is the same as the insurance industry average of 0.99%. 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 35.8% indicates that its dividend yield is sustainable for the long-term.

Erie Indemnity Co (NASDAQ:ERIE) has an annual dividend yield of 1.25%, which is the same as the insurance industry average of 0.99%. Erie Indemnity Co's dividend payout is not stable, having dropped more than 10% one 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 47.4% indicates that its dividend yield is sustainable for the long-term.

Insurance stocks were down -0.26% in the last day, and up 0.43% 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:

Enact Holdings (NASDAQ:ACT) is the most undervalued insurance stock based on WallStreetZen's Valuation Score. Enact Holdings has a valuation score of 71, which is 46 points higher than the insurance industry average of 25. It passed 5 out of 7 valuation due diligence checks.

Enact Holdings's stock has gained 32.86% in the past year. It has overperformed other stocks in the insurance industry by 17 percentage points.

Willis Towers Watson (NASDAQ:WTW) is the second most undervalued insurance stock based on WallStreetZen's Valuation Score. Willis Towers Watson has a valuation score of 57, which is 32 points higher than the insurance industry average of 25. It passed 4 out of 7 valuation due diligence checks.

Willis Towers Watson's stock has gained 10.51% in the past year. It has underperformed other stocks in the insurance industry by -5 percentage points.

Fanhua (NASDAQ:FANH) is the third most undervalued insurance stock based on WallStreetZen's Valuation Score. Fanhua has a valuation score of 43, which is 18 points higher than the insurance industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Fanhua's stock has dropped -49.62% in the past year. It has underperformed other stocks in the insurance industry by -65 percentage points.