5 Top-Ranked Stocks From the Thriving P&C Insurance Industry for 2026

The Property and Casualty (P&C) insurance space is set to benefit from better pricing, prudent underwriting, increased exposure, and a solid capital position. The Zacks-defined Property & Casualty Insurance industry is currently in the top 12% of the Zacks Industry Rank. Since it is ranked in the top half of the Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.

Players in the insurance industry are investing heavily in technology to expedite business operations. Per the Deloitte FSI Predictions article, insurers are likely to generate around $4.7 billion in annual global premiums from artificial intelligence (AI)-related insurance by 2032, at a CAGR of nearly 80%.
Increased use of blockchain, AI, advanced analytics, telematics, cloud computing, Chatbot, RoboAdvisory and insurtech solutions curbs costs and improves basis points, scale and efficiencies for P&C insurers. 

We have narrowed our search to five P&C insurers with the Zacks top rank for 2026. These are: The Travelers Companies Inc. TRV, RenaissanceRe Holdings Ltd. RNR, The Allstate Corp. ALL, Mercury General Corp. MCY and Heritage Insurance Holdings Inc. HRTG. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks in the past three months.

The Travelers Companies Inc.

The Travelers Companies boasts a strong market presence in auto, homeowners’ insurance and commercial U.S. property-casualty insurance with solid inorganic growth. A high retention rate, a rise in new business, underwriting excellence and positive renewal premium change bodes well. TRV’s commercial businesses should perform well owing to market stability. 

Given growth at profitable agencies like auto and homeowners’ business, TRV remains optimistic about the personal line of business. Strong and reliable returns from the growing fixed-income portfolio should drive net investment income. Sufficient capital boosts shareholder value. TRV aims for a mid-teens core return on equity over time.

The Travelers Companies has an expected revenue and earnings growth rate of 3.4% and 6.7%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.5% in the last 30 days.

RenaissanceRe Holdings Ltd.

RenaissanceRe Holdings has been witnessing steady premium growth over the past few years. We expect the Property business to witness 5.4% year-over-year growth in net premiums earned in 2025. Higher-yielding assets are boosting RNR’s net investment income. 

RNR has been focusing on acquisitions and business expansions to sustain growth prospects. It also does not shy away from divestitures to streamline operations. RNR repurchased shares worth $939.6 million in common stock in the first nine months of 2025.

RenaissanceRe Holdings has an expected revenue and earnings growth rate of -1.8% and 9.4%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 0.9% in the last 30 days.

The Allstate Corp.

The Allstate is witnessing consistent growth in premiums, supported by strategic acquisitions and expanding ventures. ALL’s net premium earned rose 7.6% YoY in the first nine months of 2025. Its focus on optimizing core operations has allowed it to redirect resources toward high-growth areas. Cost-saving initiatives are projected to boost profits. 

ALL’s Protection Services unit’s revenues benefited from the solid performance of Allstate Protection Plans and Arity. We expect the Protection Services unit’s revenues to rise 12.9% YoY in 2025. Its cash-generating abilities are crucial for returning capital to shareholders. ALL repurchased shares worth $805 million in the first nine months of 2025.

The Allstate has an expected revenue and earnings growth rate of 5.7% and -14.5%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 5% over the last 30 days.

Mercury General Corp.

Mercury General is poised to witness top-line growth, backed by sustained premium increases. Premiums have been benefiting from rate increases in MCY’s lines of insurance business and a higher number of policies written. 

Higher average invested assets and higher yields on investments should continue to support investment results. A solid capital position supported by consistent cash flow enables MCY to deploy capital effectively via dividends. MCY has a reinsurance program in place that strives to protect against losses.

Mercury General has an expected revenue and earnings growth rate of 6.7% and 23.5%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 13.5% over the last 30 days.

Hagerty Inc.

Hagerty provides insurance services for collector cars and enthusiast vehicles in the United States. HGTY is engaged in the underwriting, selling, and servicing collector car and enthusiast vehicle insurance policies. 

HGTY also provides Hagerty Drivers Club memberships, which are primarily bundled with insurance policies and give subscribers access to an array of products and services, such as emergency roadside assistance, Hagerty Drivers Club magazine, automotive enthusiast events, a proprietary vehicle valuation tool, and special vehicle-related discounts. In addition, HGTY offers a marketplace to complement insurance and membership offerings.

Hagerty has an expected revenue and earnings growth rate of 7.3% and -14.3%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 6.1% over the last 30 days.

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This article originally published on Zacks Investment Research (zacks.com).

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