Insurance firms play a critical role in the financial system, offering everything from property coverage to life insurance and specialized risk solutions. But worries about an economic slowdown and potential claims deterioration have kept sentiment in check, and over the past six months, the industry’s return was flat while the S&P 500 climbed by 14.3%.
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. Keeping that in mind, here is one resilient insurance stock at the top of our wish list and two we’re swiping left on.
Two Insurance Stocks to Sell:
Prudential (PRU)
Market Cap: $38.95 billion
Recognized by its iconic Rock of Gibraltar logo symbolizing strength and stability since 1896, Prudential Financial (NYSE: PRU) provides life insurance, annuities, retirement solutions, investment management, and other financial services to individual and institutional customers globally.
Why Do We Avoid PRU?
- Net premiums earned contracted by 3.1% annually over the last five years, showing unfavorable market dynamics this cycle
- Book value per share tumbled by 11.3% annually over the last five years, showing insurance sector trends are working against its favor during this cycle
- Elevated debt-to-equity ratio of 1.3× suggests the firm is overleveraged and may struggle to secure additional financing
Prudential’s stock price of $111.34 implies a valuation ratio of 1.2x forward P/B. Check out our free in-depth research report to learn more about why PRU doesn’t pass our bar.
CNA Financial (CNA)
Market Cap: $11.96 billion
With roots dating back to 1853 and majority ownership by Loews Corporation, CNA Financial (NYSE: CNA) is a commercial property and casualty insurance provider offering coverage for businesses, including professional liability, surety bonds, and specialized risk management services.
Why Is CNA Risky?
- Net premiums earned only expanded by 7.3% annually over the last five years, trailing its insurance peers as its scale limited incremental business
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 6.8% annually
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 1.1% annually over the last five years
CNA Financial is trading at $44.17 per share, or 9.3x forward P/E. Read our free research report to see why you should think twice about including CNA in your portfolio.
One Insurance Stock to Buy:
F&G Annuities & Life (FG)
Market Cap: $4.44 billion
Founded in 1959 and serving approximately 677,000 policyholders who rely on its financial protection products, F&G Annuities & Life (NYSE: FG) provides fixed annuities, life insurance, and pension risk transfer solutions to retail and institutional clients.
Why Is FG a Good Business?
- Net premiums earned surged by 28.6% annually over the past two years, reflecting strong market share gains this cycle
- Annual book value per share growth of 37.7% over the past two years was outstanding, reflecting strong capital accumulation this cycle
- Projected book value per share growth of 41% for the next 12 months is above its two-year trend, pointing to accelerating profitability
At $33.04 per share, F&G Annuities & Life trades at 0.9x forward P/B. Is now the time to initiate a position? See for yourself 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 5 Growth Stocks for this month. 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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