Insurance providers use their expertise in risk assessment to help protect assets while offering consumers peace of mind through comprehensive coverage options. But worries about an economic slowdown and potential claims deterioration have kept sentiment in check, and over the past six months, the industry’s return was flat while the S&P 500 climbed by 14.3%.
Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. On that note, here is one resilient insurance stock at the top of our wish list and two best left ignored.
Two Insurance Stocks to Sell:
CNO Financial Group (CNO)
Market Cap: $3.81 billion
Rebranded from Conseco in 2010 to signal a fresh start after navigating financial challenges, CNO Financial Group (NYSE: CNO) develops and markets health insurance, annuities, and life insurance products primarily targeting middle-income pre-retirees and retirees.
Why Do We Think Twice About CNO?
- Insurance offerings faced market headwinds this cycle, reflected in stagnant net premiums earned over the last five years
- Projected sales growth of 3.8% for the next 12 months suggests sluggish demand
- Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 5.7% annually over the last five years
CNO Financial Group’s stock price of $40.30 implies a valuation ratio of 1.4x forward P/B. Dive into our free research report to see why there are better opportunities than CNO.
AXIS Capital (AXS)
Market Cap: $7.59 billion
Founded in the aftermath of the 9/11 attacks when insurance capacity was scarce, AXIS Capital Holdings Limited (NYSE: AXS) is a global specialty insurer and reinsurer that provides coverage for complex risks across property, liability, professional lines, cyber, and other specialty markets.
Why Does AXS Give Us Pause?
- Annual revenue growth of 5.2% over the last two years was below our standards for the insurance sector
- Net premiums earned expanded by 3.8% annually over the last two years, falling below our expectations for the insurance sector
- ROE of 10.9% reflects management’s challenges in identifying attractive investment opportunities
At $98.00 per share, AXIS Capital trades at 1.3x forward P/B. Check out our free in-depth research report to learn more about why AXS doesn’t pass our bar.
One Insurance Stock to Watch:
Travelers (TRV)
Market Cap: $62.43 billion
Tracing its roots back to 1853 when it insured travelers against accidents on steamboats and railroads, Travelers (NYSE: TRV) provides a wide range of commercial and personal property and casualty insurance products to businesses, government units, associations, and individuals.
Why Are We Positive On TRV?
- Steady 9.2% annualized growth in net premiums earned over the last two years shows its insurance offerings are gaining traction
- Annual book value per share growth of 27.3% over the last two years was superb and indicates its capital strength increased during this cycle
- Notable projected book value per share growth of 21% for the next 12 months hints at strong capital generation
Travelers is trading at $279.93 per share, or 1.9x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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-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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