1 Insurance Stock on Our Buy List and 2 We Brush Off

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 4.9% return has trailed the S&P 500 by 6.2 percentage points.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here is one insurance stock poised to generate sustainable market-beating returns and two that may face trouble.

Two Insurance Stocks to Sell:

Hartford (HIG)

Market Cap: $37.68 billion

Recognizable by its iconic stag logo that dates back to 1810, The Hartford (NYSE:HIG) provides property and casualty insurance, group benefits, and investment products to individuals and businesses across the United States.

Why Do We Think Twice About HIG?

1. Large revenue base constrains its growth potential, as seen in its unexciting 6.1% annualized increases in net premiums earned over the last five years fell below our expectations for the insurance sector
2. Projected sales decline of 28.6% for the next 12 months points to a tough demand environment ahead
3. Large asset base makes it harder to grow book value per share quickly, and its annual book value per share growth of 5.8% over the last five years was below our standards for the insurance sector

Hartford’s stock price of $135.24 implies a valuation ratio of 2.1x forward P/B. Dive into our free research report to see why there are better opportunities than HIG.

The Hanover Insurance Group (THG)

Market Cap: $6.19 billion

Founded in 1852 during a time when fire insurance was crucial for protecting businesses and homes, The Hanover Insurance Group (NYSE:THG) provides property and casualty insurance products through independent agents, serving individuals, small businesses, and mid-sized companies.

Why Does THG Give Us Pause?

1. 5.1% annual revenue growth over the last two years was slower than its insurance peers
2. Net premiums earned expanded by 4.6% annually over the last two years, falling below our expectations for the insurance sector
3. 2.6% annual book value per share growth over the last five years was slower than its insurance peers

At $174.08 per share, The Hanover Insurance Group trades at 1.7x forward P/B. If you’re considering THG for your portfolio, see our FREE research report to learn more.

One Insurance Stock to Buy:

W. R. Berkley (WRB)

Market Cap: $26.11 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 Love WRB?

1. Net premiums earned expanded by 12.4% annually over the last five years, demonstrating exceptional market penetration this cycle
2. Share repurchases over the last five years enabled its annual earnings per share growth of 35.5% to outpace its revenue gains
3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

W. R. Berkley is trading at $69.36 per share, or 2.6x forward P/B. Is now the right time to buy? See for yourself in our comprehensive 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 6 Stocks for this week. 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.