Updated on October 20th, 2025 by Bob Ciura Insurance companies have consistently demonstrated impressive profitability, primarily through two revenue streams. First, they generate income by collecting premiums on the policies they underwrite. Second, they invest the substantial sums of accumulated premiums that remain unclaimed, further enhancing their financial performance.<\/p>\n This dual revenue model has made insurance companies some of the most rewarding investments over the past several decades. Notably, many of the Dividend Aristocrats<\/a> and Dividend Achievers<\/a> are found within the insurance sector.<\/p>\n For those interested in exploring this sector further, you can download our comprehensive Excel spreadsheet featuring over 60 insurance stocks, complete with essential metrics like P\/E ratios and dividend yields, by clicking the link below:<\/p>\n Our list of insurance stocks is compiled from two prominent exchange-traded funds:<\/p>\n The insurance industry has historically created significant wealth, largely due to its stable nature and high profitability when managed effectively. A prime example is Shelby Davis<\/a>, who transformed a $50,000 investment into $900 million by investing in insurance stocks starting in his late 30s.<\/p>\n However, in recent years, the insurance sector, along with other areas of the financial sector<\/a> such as banks, has faced challenges due to low interest rates. This environment compresses the spread between the returns on invested capital and the payouts for claims. Conversely, rising interest rates could serve as a catalyst for insurance stocks, potentially increasing their net investment income.<\/p>\n Despite these challenges, several insurers currently appear attractively priced and are well-positioned to deliver robust total annual returns over the next five years. Below, we rank the top five insurance stocks based on their expected total annual returns.<\/p>\n Kinsale Capital Group specializes in the excess and surplus (E&S) lines market across all 50 U.S. states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The company primarily writes coverage for hard-to-place small business and personal risks through independent brokers.<\/p>\n In 2024, KNSL generated $1.9 billion in gross written premiums, with casualty insurance products accounting for about two-thirds of this total. Recently, the company reported a 22.2% year-over-year revenue increase to $469.8 million for the second quarter of 2025.<\/p>\n Click here to download our most recent Sure Analysis report on KNSL<\/strong><\/a><\/p>\n Selective Insurance Group is a regional property and casualty insurer offering a variety of commercial and personal insurance products, primarily in the eastern and midwestern U.S. As of mid-2025, its Standard Commercial Lines segment represented 79% of total net premiums written.<\/p>\n In the second quarter of 2025, SIGI reported a 10.9% year-over-year revenue growth to $1.33 billion, driven by a 10% increase in net premiums earned.<\/p>\n Click here to download our most recent Sure Analysis report on SIGI<\/strong><\/a><\/p>\n The Hanover Insurance Group focuses on providing property and casualty insurance products through independent agents. In 2024, Personal Lines accounted for approximately 41% of revenues, with Commercial Lines contributing 36%.<\/p>\n For the second quarter of 2025, the company reported net income of $157.1 million, a significant increase from the previous year.<\/p>\n Click here to download our most recent Sure Analysis report on THG<\/strong><\/a><\/p>\n First American Financial Corporation operates in two segments: title insurance and specialty insurance. In 2024, the company generated $6.1 billion in revenue.<\/p>\n In its recent second-quarter report, First American reported a 14% revenue increase year-over-year, reaching $1.8 billion.<\/p>\n Click here to download our most recent Sure Analysis report on FAF<\/strong><\/a><\/p>\n Globe Life is an insurance holding company that primarily offers life and supplemental health insurance. Established in 1979, Globe Life has consistently raised its dividend for the past 20 years.<\/p>\n In the second quarter of 2025, the company reported a net operating income per diluted share of $3.27, reflecting a 10.1% increase from the previous year.<\/p>\n Click here to download our most recent Sure Analysis report on GL<\/strong><\/a><\/p>\n Investing in insurance stocks may seem mundane, but for those seeking solid annual returns and consistent dividend income, this sector offers compelling opportunities. Many of the stocks listed here have demonstrated a history of steady dividend growth, making them attractive options for income-focused investors.<\/p>\n For further exploration, consider these articles featuring stocks with long-standing dividend histories, ideal for dividend growth investors:<\/p>\n Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.<\/p>\n
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Table Of Contents<\/strong><\/h3>\n
Best Insurance Stock #5: Kinsale Capital Group (KNSL)<\/strong><\/h3>\n
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Best Insurance Stock #4: Selective Insurance Group (SIGI)<\/strong><\/h3>\n
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Best Insurance Stock #3: The Hanover Insurance Group (THG)<\/strong><\/h3>\n
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Best Insurance Stock #2: First American Financial (FAF)<\/strong><\/h3>\n
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Best Insurance Stock #1: Globe Life (GL)<\/strong><\/h3>\n
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