The insurance industry is known for its stability and lower volatility compared to other sectors, even during economic downturns. This is largely because it is less directly impacted by the economic environment. Analyst Anantdeep Singh highlights that property and casualty insurance companies, which primarily focus on domestic markets, are less affected by tariffs. This makes them a relatively stable investment choice amid global market uncertainties.
However, Singh expresses concerns about the health insurance sector, noting potential major reforms as the Trump administration aims to improve industry efficiency. This could introduce significant changes to the sector.
In this market context, Wall Street's view on major insurance stocks is noteworthy. UnitedHealth (UNH, Financial) and Elevance Health (ELV) have emerged as favorites, receiving the most "strong buy" ratings. On the other hand, property and casualty insurance giants such as Progressive (PGR), Chubb (CB), American International Group (AIG), and Allstate Corporation (ALL) have been rated as "hold" on the analysis platform Seeking Alpha. Wall Street sell-side analysts, however, have more varied opinions on these stocks.
Overall, there is a consensus between Wall Street analysts and Seeking Alpha regarding life and health insurance companies like Aflac (AFL), Prudential Financial (PRU), and MetLife (MET).
