How do dividends work for insurance companies?

Many insurance stocks pay dividends, with most paying quarterly. Not all insurance companies pay dividends; some retain profits to grow their businesses or investment portfolios.

Are insurance stocks recession-resistant?

Insurance is generally recession-resistant, as it is viewed as an essential expense by many people. This is especially true for "mandatory" types of insurance, such as homeowners and auto insurance. Life insurance and other types tend to be slightly less recession-resistant.

Are insurance stocks a good buy?

Insurance stocks generally trade for lower price-to-earnings (P/E) valuations than the average S&P 500 company. However, whether insurance stocks are a good buy largely depends on your investment goals, risk tolerance, and income needs.

What is the most undervalued insurance stock?

There's no one definition of what makes an insurance stock undervalued. The most 'undervalued' stocks are those trading at the lowest prices relative to the intrinsic value of the business, so metrics like price-to-book ratios, price-to-earnings-growth (PEG) multiples, and others can help identify insurance stocks that may be undervalued relative to peers.

What are the best health insurance stocks?

Five of the largest health insurance stocks by market cap (the size of the company calculated by the shares outstanding multiplied by the share price) include:UnitedHealth Group (NYSE: UNH)Elevance (NYSE: ELV)CVS Health (NYSE: CVS)Cigna (NYSE: CI)Humana (NYSE: HUM)

Best Insurance Stocks for 2026 and How to Invest

By Matthew Frankel, CFP – Updated Aug 14, 2026 at 1:51 PM EST | Fact-checked by Frank Bass

Key Points

Progressive (PGR) offers robust returns with its advanced telematics enhancing underwriting efficiency.
Markel (MKL) engages in underwriting and diversified investments, similar to Berkshire Hathaway.
Kinsale Capital (KNSL) excels in high-risk insurance with a significant underwriting profit margin.

Insurance stocks are publicly traded securities that represent ownership interests in insurance companies, and they can make a great addition to any investor’s stock portfolio. Not only does the insurance business have the potential to deliver excellent long-term returns, but it also can perform well in good times and bad.

With that in mind, here’s an overview of how the insurance business works, some important concepts to know, and three insurance stocks that investors should keep on their radar in 2026 and beyond.

3 top insurance stocks for 2026

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Ticker Information Table
Name and ticker	Current price	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield
Progressive (NYSE:PGR)	$209.60	$121.9 billion	6.63%
Markel Group (NYSE:MKL)	$1,847.24	$22.9 billion	0.00%
Kinsale Capital Group (NYSE:KNSL)	$379.19	$8.6 billion	0.22%

Data as of Aug 16, 2026. Showing 3 of 3 total entries.

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1. Progressive

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NYSE: PGR

Progressive

Today's Change

(0.35%) $0.73

Current Price

$209.60

Key Data Points

Market Cap

$122B

Day's Range

$207.31 - $210.92

52wk Range

$189.20 - $254.93

Volume

2.9M

Avg Vol

3.2M

Dividend Yield

6.63%

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Progressive (PGR +0.35%) is a great option for investors seeking insurance exposure with low volatility. It is the largest publicly traded auto insurance company in the United States and has a long history of excellent profitability and growth.

Because it's been around for so long, many investors don't realize how much of a technology leader Progressive is. The company launched the first mass-market telematics device over a decade ago and has been innovating ever since. It has a massive data advantage over peers, which has allowed it to underwrite more effectively and produce outsized returns. In fact, Progressive has generated a total return of about 720% over the past 10 years, handily outperforming the S&P 500.

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2. Markel

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NYSE: MKL

Markel Group

Today's Change

(0.56%) $10.26

Current Price

$1,847.24

Key Data Points

Market Cap

$23B

Day's Range

$1826.87 - $1849.86

52wk Range

$1719.41 - $2207.59

Volume

39.1K

Avg Vol

72.2K

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Markel (MKL +0.56%) is a specialty insurer that insures unusual risks, a much-needed business in both strong economies and recessions. Not only does Markel typically run a nice underwriting profit, but the company has an interesting investment strategy.

Instead of focusing solely on safe investments, such as high-grade bonds, Markel allocates about one-third of its invested assets to publicly traded stocks and acquires entire businesses through its Markel Ventures segment. For this reason, Markel is often described as a smaller-scale version of Berkshire Hathaway (BRK.A -0.84%)(BRK.B -0.57%), which is Markel's largest stock investment.

3. Kinsale Capital Group

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NYSE: KNSL

Kinsale Capital Group

Today's Change

(0.59%) $2.22

Current Price

$379.19

Key Data Points

Market Cap

$8.6B

Day's Range

$374.35 - $381.41

52wk Range

$287.20 - $485.00

Volume

192.7K

Avg Vol

314.6K

Dividend Yield

0.22%

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Did You Know?

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How to invest in insurance stocks

The process of investing in insurance stocks is pretty straightforward:

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Determine the number of shares to purchase: Consider your investment objectives and the percentage of your portfolio you wish to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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A graphic showing three profitability metrics specific to insurance stocks: the loss ratio, expense ratio and combined ratio. — Image source: The Motley Fool.

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Benefits and risks of investing in insurance stocks

There are some excellent reasons to invest in insurance stocks:

Insurance stocks can be a great way to build wealth over time without excessive risk.
Insurance companies generate revenue not only from profitable underwriting but also from investments, and therefore can be excellent total return investments.
Insurance is a recession-resistant business, as paying for insurance is largely considered an essential expense, even during tough times.
Insurance is also an inflation-resistant business, as premiums tend to rise over time along with the cost of living.

However, there's no such thing as a risk-free stock investment, and insurance stocks aren't an exception:

By nature, insurance has an element of unpredictability -- after all, the definition of insurance is transferring risk from one party (customers) to another (the insurance company).
Insurance profits can be lumpy, meaning they aren't always consistent.
Insurance companies make less money from their investments if interest rates fall.

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Methodology: How these stocks were chosen

Before arriving at Progressive, Markel, and Kinsale Capital Group as my top insurance picks, I looked for a few things when comparing dozens of insurance companies. Among other things, I was looking for disciplined underwriting (consistently low combined ratios), the track record of growth and execution, a durable moat, balance sheet strength, capital allocation, and risk management.

Here are a few reasons these three stood out. Progressive has done a great job of leveraging technology to build a durable competitive moat and has a track record of best-in-class profitability. Markel has adopted the business model proven by Berkshire Hathaway to deliver excellent compound growth. And finally, Kinsale is a younger, growing company with almost unheard-of profitability and excellent discipline.

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The bottom line

Insurance companies have highly attractive economics. Other people give them money to hold until a claim needs to be paid, and the insurer can invest it in the meantime for its own benefit. This is why Warren Buffett is so attracted to insurance and chose it as the backbone of Berkshire Hathaway’s empire.

Insurance is also a recession-resistant business. During tough times, people still need to maintain auto and homeowners coverage, for example. In short, insurance is a business that can deliver excellent long-term returns with relatively low volatility.

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Insurance stock FAQ

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About the Author

Matt Frankel, CFP®, is a contributing Motley Fool stock market analyst specializing in the real estate and financial sectors. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, Globe St, The National Desk, and other TV networks and publications for his real estate, financial, stock market, and investing expertise.

TMFMattFrankel

@MattFrankelUSC

Matt Frankel, CFP has positions in Berkshire Hathaway, Kinsale Capital Group, and Markel Group. The Motley Fool has positions in and recommends Berkshire Hathaway, Kinsale Capital Group, and Markel Group. The Motley Fool has a disclosure policy.

Best Insurance Stocks for 2026 and How to Invest

Key Points

3 top insurance stocks for 2026

1. Progressive

NYSE: PGR

Key Data Points

2. Markel

NYSE: MKL

Key Data Points

3. Kinsale Capital Group

NYSE: KNSL

Key Data Points

How to invest in insurance stocks

Benefits and risks of investing in insurance stocks

Methodology: How these stocks were chosen

The bottom line

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Insurance stock FAQ

About the Author

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9 Best Dividend Stocks to Buy and Hold for August 2026

NYSE: PGR

Key Data Points

Insurance stock FAQ

How do dividends work for insurance companies?

Are insurance stocks recession-resistant?

Are insurance stocks a good buy?

What is the most undervalued insurance stock?

What are the best health insurance stocks?

1. Progressive

2. Markel

How to invest in insurance stocks

Benefits and risks of investing in insurance stocks

Methodology: How these stocks were chosen

The bottom line

Related investing topics

3 top insurance stocks for 2026

NYSE: KNSL

Key Data Points

NYSE: MKL

Key Data Points

3. Kinsale Capital Group