Insurance companies serve as the backbone of risk management, providing essential protection and financial security for individuals and businesses. But worries about an economic slowdown and potential claims deterioration have kept sentiment in check, and over the past six months, the industry’s 5.9% return has trailed the S&P 500 by 9.8 percentage points.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here are two resilient insurance stocks at the top of our wish list and one we’re passing on.
One Insurance Stock to Sell:
Brighthouse Financial (BHF)
Market Cap: $2.48 billion
Spun off from MetLife in 2017 to focus specifically on retail financial products, Brighthouse Financial (NASDAQ: BHF) provides annuity contracts and life insurance products designed to help individuals protect wealth, generate income, and transfer assets.
Why Are We Hesitant About BHF?
- Insurance policy sales contracted this cycle as net premiums earned decreased by 1.9% annually over the last five years
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 15.1% annually over the last five years
- Elevated debt-to-equity ratio of 1.3× suggests the firm is overleveraged and may struggle to secure additional financing
At $46.28 per share, Brighthouse Financial trades at 0.6x forward P/B. Read our free research report to see why you should think twice about including BHF in your portfolio.
Two Insurance Stocks to Watch:
Primerica (PRI)
Market Cap: $8.90 billion
With a sales force of over 140,000 licensed representatives operating on an independent contractor model, Primerica (NYSE: PRI) provides term life insurance, investment products, and other financial services to middle-income households in the United States and Canada.
Why Is PRI Interesting?
- Pre-tax profits increased over the last four years as the company gained some leverage on its fixed costs and became more efficient
- Share repurchases over the last five years enabled its annual earnings per share growth of 18.8% to outpace its revenue gains
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Primerica is trading at $274.90 per share, or 3.8x forward P/B. Is now a good time to buy? See for yourself in our full research report, it’s free.
Skyward Specialty Insurance (SKWD)
Market Cap: $2.03 billion
Founded in 2006 to serve markets where standard insurance coverage falls short, Skyward Specialty Insurance (NASDAQ: SKWD) provides customized commercial property, casualty, and health insurance solutions for underserved or specialized market niches.
Why Is SKWD a Top Pick?
- Strong 28.2% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 46.9% over the last two years outstripped its revenue performance
- Annual book value per share growth of 26.6% over the last two years was superb and indicates its capital strength increased during this cycle
Skyward Specialty Insurance’s stock price of $50.29 implies a valuation ratio of 2.2x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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