Insurance providers use their expertise in risk assessment to help protect assets while offering consumers peace of mind through comprehensive coverage options. But concerns about claims severity and tightening regulations have tempered enthusiasm, capping the upside for insurance stocks lately - over the past six months, the industry’s flat return has trailed the S&P 500’s 14.9% gain.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Taking that into account, here are two insurance stocks boasting durable advantages and one best left ignored.
One Insurance Stock to Sell:
Essent Group (ESNT)
Market Cap: $6.34 billion
Serving as a crucial bridge between homebuyers and the American dream of homeownership, Essent Group (NYSE: ESNT) provides private mortgage insurance and title services that enable lenders to offer home loans with down payments of less than 20%.
Why Does ESNT Fall Short?
- Sluggish 3.6% annualized growth in net premiums earned over the last five years indicates the firm trailed its insurance peers
- Day-to-day expenses have swelled relative to revenue over the last two years as its pre-tax profit margin fell by 12.5 percentage points
- Incremental sales over the last two years were less profitable as its 4.9% annual earnings per share growth lagged its revenue gains
At $64.31 per share, Essent Group trades at 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than ESNT.
Two Insurance Stocks to Watch:
W. R. Berkley (WRB)
Market Cap: $28.37 billion
Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE: WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.
Why Do We Watch WRB?
- Strong 12.7% annualized net premiums earned expansion over the last five years shows it’s capturing market share this cycle
- Share repurchases over the last five years enabled its annual earnings per share growth of 32% to outpace its revenue gains
- Capital strength is on track to rise over the next 12 months as its 28.2% projected book value per share growth implies profitability will accelerate from its two-year trend
W. R. Berkley is trading at $71.41 per share, or 2.9x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
Hamilton Insurance Group (HG)
Market Cap: $2.46 billion
Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE: HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.
Why Could HG Be a Winner?
- Annual revenue growth of 49.7% over the last two years was superb and indicates its market share increased during this cycle
- Net premiums earned expanded by 26% annually over the last two years, demonstrating exceptional market penetration this cycle
- Pre-tax profits increased over the last two years as the company gained some leverage on its fixed costs and became more efficient
Hamilton Insurance Group’s stock price of $24.56 implies a valuation ratio of 0.9x forward P/B. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking 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-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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