Insurance firms play a critical role in the financial system, offering everything from property coverage to life insurance and specialized risk solutions. Still, investors are uneasy as insurers face challenges from catastrophic events and potential regulatory changes. These doubts have certainly contributed to insurance stocks’ recent underperformance - over the past six months, the industry’s 1.3% gain has fallen behind the S&P 500’s 10.4% rise.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. On that note, here are three insurance stocks boasting durable advantages.
Primerica (PRI)
Market Cap: $8.40 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 Do We Watch PRI?
- Pre-tax profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Performance over the past five years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 27.2% return on equity demonstrates management’s skill in finding high-return investments
At $263.11 per share, Primerica trades at 3.5x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Skyward Specialty Insurance (SKWD)
Market Cap: $1.92 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 Do We Love SKWD?
- Net premiums earned surged by 26.6% annually over the past two years, reflecting strong market share gains this cycle
- Annual book value per share growth of 29.3% over the last two years was superb and indicates its capital strength increased during this cycle
- Expected book value per share growth of 22.6% for the next year suggests its capital position will strengthen considerably
Skyward Specialty Insurance is trading at $47.49 per share, or 2x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Kinsale Capital Group (KNSL)
Market Cap: $8.95 billion
Founded in 2009 during the aftermath of the financial crisis when many insurers were retreating from riskier markets, Kinsale Capital Group (NYSE: KNSL) is an insurance company that specializes in writing policies for hard-to-place, unusual, or high-risk businesses that standard insurers typically avoid.
Why Is KNSL a Good Business?
- Strong 23.8% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Annual book value per share growth of 41.8% over the last two years was superb and indicates its capital strength increased during this cycle
- Notable projected book value per share growth of 26.3% for the next 12 months hints at strong capital generation
Kinsale Capital Group’s stock price of $384.66 implies a valuation ratio of 4.4x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% 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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