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 2.8% return has trailed the S&P 500 by 5.4 percentage points.
Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. Taking that into account, here are two insurance stocks we think can generate sustainable market-beating returns and one we’re passing on.
One Insurance Stock to Sell:
Corebridge Financial (CRBG)
Market Cap: $15.64 billion
Spun off from insurance giant AIG in 2022 to focus on the growing retirement market, Corebridge Financial (NYSE: CRBG) provides retirement solutions, annuities, life insurance, and institutional risk management products in the United States.
Why Does CRBG Fall Short?
- Net premiums earned contracted by 15.4% annually over the last two years, showing unfavorable market dynamics this cycle
- Costs have risen faster than its revenue over the last four years, causing its pre-tax profit margin to decline by 22.4 percentage points
- High debt-to-equity ratio of 1.1× shows the firm carries too much debt relative to shareholder equity, increasing bankruptcy risk
Corebridge Financial’s stock price of $30.06 implies a valuation ratio of 1.2x forward P/B. Check out our free in-depth research report to learn more about why CRBG doesn’t pass our bar.
Two Insurance Stocks to Buy:
NMI Holdings (NMIH)
Market Cap: $2.90 billion
Founded in the aftermath of the 2008 housing crisis to bring new capacity to the mortgage insurance market, NMI Holdings (NASDAQ: NMIH) provides mortgage insurance that protects lenders against losses when homebuyers default on their mortgage loans.
Why Is NMIH a Top Pick?
- Insurance products connect with policyholders, demonstrated by its above-market 9.2% annual growth in net premiums earned over the last two years
- Underwriting operating profits increased over the last five years as the firm gained some leverage on its fixed costs and became more efficient
- Annual book value per share growth of 16.2% over the last five years was superb and indicates its capital strength increased during this cycle
At $37.74 per share, NMI Holdings trades at 1.1x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.
Kinsale Capital Group (KNSL)
Market Cap: $9.46 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 Will KNSL Beat the Market?
- Net premiums earned surged by 23.8% annually over the past two years, reflecting strong market share gains 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
- Book value per share outlook for the upcoming 12 months is outstanding and shows it’s on track to build significant equity value
Kinsale Capital Group is trading at $406.97 per share, or 4.8x forward P/B. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
