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5 Stocks to Buy From the Prosperous Multiline Insurance Industry
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Product diversification has been helping Zacks Multiline Insurance industry players lower concentration risk, ensure uninterrupted revenue generation and improve retention ratio. Better pricing, prudent underwriting, increased exposure and faster economic recovery should benefit Prudential Financial Inc. (PRU - Free Report) , Principal Financial Group Inc. (PFG - Free Report) , Assurant Inc. (AIZ - Free Report) , Oscar Health (OSCR - Free Report) and Horace Mann Educators (HMN - Free Report) . Accelerated digitalization will help in the smooth functioning of the industry. The increasing acceptance of embedded insurance is also expected to drive the industry. Per a report in Financial Services, premiums from embedded insurance are projected to exceed $722 billion globally by 2030.
The solid capital level of multiline insurers will fuel merger and acquisition (M&A) activities. At its latest meeting, the Federal Reserve raised the benchmark interest rate by 25 basis points under Chair Kevin Warsh, lifting the federal funds rate target range to 3.75%-4%. Insurers are direct beneficiaries of an improved rate environment. Investment income is expected to remain strong, given insurers’ diverse investment portfolio as well as the continued growth of private market investments. Also, an investment portfolio skewed toward fixed-income maturities provides some upside. Continued inflation also acts as a drag, making repairs, medical care, and replacement costs more expensive. Insurers’ focus on personalizing offerings to enhance customer experience and leveraging digitalization is the key. Given moderating pricing and increased competition, pricing competition will likely improve, according to an Insurance Business report.
About the Industry
The Zacks Multiline Insurance industry comprises companies that provide single insurance coverage, bundling automobile, homeowner, long-term care, and life and health insurance to individuals and businesses. The insured pays a single premium and is covered for many things through a single contract. These companies cover commercial and personal properties, automobiles, marine, livestock, aviation, personal accident, life, including permanent and term insurance, supplemental accident and health insurance, workers’ compensation, annuity products, private mortgage insurance, et al. The players also provide risk management services. Since the companies offer single insurance coverage for multiple products, customer retention improves. The insured stands to benefit from lower premium payments compared to paying individual premiums for insuring varied products.
4 Trends Shaping the Future of the Multiline Insurance Industry
Diversified Portfolio Supports Long-Term Growth: Multiline insurers benefit from diversified product portfolios, reducing reliance on any single business line and limiting concentration risk. Rising awareness of financial protection, increasing demand for customized insurance solutions and emerging opportunities in cyber, pet and green-energy insurance are expected to support premium growth. While lower interest rates may put pressure on life insurance earnings and catastrophe losses can affect non-life profitability, diversified operations and disciplined underwriting help mitigate these risks.
Softening Pricing Environment: Commercial insurance pricing is easing after several years of strong premium increases as improved industry capital levels and greater underwriting capacity intensify competition. With more insurers competing for quality business, pricing power is weakening, limiting premium growth and putting pressure on underwriting margins, especially if claims costs remain elevated. In this environment, disciplined underwriting, prudent risk selection and cost efficiency will be critical to sustaining profitability.
Merger & Acquisition Activity: Consolidation in the multiline insurance industry is expected to accelerate as insurers seek to expand across new products, markets and geographies while strengthening their competitive positions. Improved deal activity, particularly in technology-driven transactions, is likely to support growth following a slowdown caused by inflation. Insurers are increasingly acquiring insurtech firms to enhance digital capabilities, improve operational efficiency and deliver more innovative, customer-centric insurance solutions amid the industry's ongoing digital transformation.
Increased Adoption of Technology: Multiline insurers are increasingly adopting AI, advanced analytics, cloud computing, blockchain and automation to improve underwriting, claims processing and customer service. Digital distribution channels and real-time data enable more accurate risk assessment and personalized pricing. Continued investments in technology and analytics are enhancing operational efficiency, lowering costs and strengthening insurers' ability to compete in an increasingly digital marketplace.
Zacks Industry Rank Indicates Bright Prospects
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates strong prospects in the near term. The Zacks Multiline Insurance industry, housed within the broader Zacks Finance sector, currently carries a Zacks Industry Rank #108, which places it in the top 44% of 247 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is the result of a positive earnings outlook for the constituent companies in aggregate. The industry’s current year earnings estimates have been revised 2% upward in the last six months by analysts.
Before we present a few multiline insurance stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry vs. Sector and S&P 500
The Multiline Insurance industry has underperformed the sector and the Zacks S&P 500 composite in a year. The stocks in this industry have collectively gained 1.9% in a year compared with the Finance sector’s increase of 6.7% and the Zacks S&P 500 composite’s rise of 16.8% in the same time frame.
1-Year Price Performance
Current Valuation
On the basis of its trailing 12-month price-to-book (P/B), which is commonly used for valuing insurance stocks, the industry is currently trading at 2.67X compared with the S&P 500’s 7.28X and the sector’s 4.37X.
Over the past five years, the industry has traded as high as 2.90X, as low as 1.34X and at the median of 2.52X.
Price-to-Book (P/B) Ratio (TTM)
Price-to-Book (P/B) Ratio (TTM)
5 Multiline Insurance Stocks to Add to Your Portfolio
We are presenting two Zacks Rank #1 (Strong Buy) stocks and three Zacks Rank #2 (Buy) stocks from the Multiline Insurance industry.
Oscar Health: Headquartered in New York, NY, Oscar offers a differentiated, technology-enabled approach to health insurance, with a strong focus on the Affordable Care Act marketplace. Continued membership growth, stronger underwriting discipline and increasing operating leverage position the company for sustained expansion. Expanding margins and long-term monetization of its technology platform add to the upside. Oscar Health sports a Zacks Rank #1.
The Zacks Consensus Estimate for OSCR’s 2026 and 2027 earnings indicates 208.3% and 21% year-over-year increases, respectively. The expected long-term earnings growth rate is pegged at 49.7%, better than the industry average of 13.2%. It has a VGM Score of A. The consensus estimate for 2026 and 2027 earnings witnessed an 18.8% and a 24% upward movement, respectively, in the past 30 days.
Price and Consensus: OSCR
Horace Mann Educators: Headquartered in Springfield, IL, it is the largest financial services company serving the U.S. educator market. Its niche focus, improved product offerings, better pricing and a strengthened distribution model are likely to benefit results. Earned premium growth ahead of loss cost growth is likely to favor the combined ratio. Continued share buybacks are expected to boost the bottom line. It carries a Zacks Rank #1.
The Zacks Consensus Estimate for HMN’s 2026 and 2027 earnings indicates a 1.5% and a 9.9% year-over-year increase, respectively. Horace Mann has a VGM Score of B.
Price and Consensus: HMN
Assurant: Headquartered in Atlanta, GA, Assurant is a global provider of risk management solutions in the housing and lifestyle markets. Protection and service platforms support recurring revenues and sustainable growth across Global Lifestyle and Global Housing. Connected Living is benefiting from program optimization, subscriber gains and broader supply-chain capabilities, while Global Automotive is supported by international partnerships and improved loss experience. Strong liquidity and disciplined share repurchases provide financial flexibility and support shareholder returns. It carries a Zacks Rank #2.
The Zacks Consensus Estimate for AIZ’s 2026 and 2027 earnings indicates 12.9% and 5.2% year-over-year increases, respectively. The consensus estimate for 2026 and 2027 earnings witnessed 1.2% and 1% upward movement, respectively, in the past 30 days. It has a VGM Score of A.
Price and Consensus: AIZ
Principal Financial Group: Headquartered in Des Moines, Principal Financial Group is a global financial services company providing retirement solutions, asset management, insurance and employee benefits to businesses, individuals and institutional clients. Principal Financial benefits from a diversified mix of retirement, asset management, insurance and employee benefits, which supports recurring fees, premiums and investment income. Retirement deposits, participant engagement and international pension assets continue to expand, while higher AUM and margin gains support earnings scalability. The Beam Benefits acquisition should broaden reach in the small and mid-sized business market. Excess capital supports investment, dividends and buybacks for this Zacks Rank #2 insurer.
The Zacks Consensus Estimate for PFG’s 2026 and 2027 earnings indicates a year-over-year increase of 16.6% and 8.5%, respectively. The consensus estimates for 2026 and 2027 earnings have moved 2 cents and 5 cents north, respectively, in the past 30 days. The expected long-term earnings growth rate is pegged at 11.5%. It has a VGM Score of B.
Price and Consensus: PFG
Prudential Financial: Headquartered in Newark, NJ, Prudential Financial, through its subsidiaries and affiliates, provides insurance, investment management and other financial products and services to individual and institutional customers in the United States and other countries. Prudential Financial benefits from rising retirement demand, a broader annuity and pension risk transfer franchise and PGIM’s integrated asset management platform. Its refreshed strategy should concentrate capital in the United States, Japan and select European markets while expanding capital-light earnings and lowering operating costs. Group Insurance and Individual Life also add diversification, while updated steady shareholder distributions support returns. It carries a Zacks Rank #2.
The Zacks Consensus Estimate for PRU’s 2026 and 2027 earnings indicates 0.8% and 2.8% year-over-year increases, respectively. The consensus estimates for 2026 and 2027 earnings have moved 3 cents and 1 cent north, respectively, in the past 30 days. The expected long-term earnings growth rate is pegged at 4.6%. It has a VGM Score of B.
View the Zacks #1 Rank List
Image: Bigstock
5 Stocks to Buy From the Prosperous Multiline Insurance Industry
Product diversification has been helping Zacks Multiline Insurance industry players lower concentration risk, ensure uninterrupted revenue generation and improve retention ratio. Better pricing, prudent underwriting, increased exposure and faster economic recovery should benefit Prudential Financial Inc. (PRU - Free Report) , Principal Financial Group Inc. (PFG - Free Report) , Assurant Inc. (AIZ - Free Report) , Oscar Health (OSCR - Free Report) and Horace Mann Educators (HMN - Free Report) . Accelerated digitalization will help in the smooth functioning of the industry. The increasing acceptance of embedded insurance is also expected to drive the industry. Per a report in Financial Services, premiums from embedded insurance are projected to exceed $722 billion globally by 2030.
The solid capital level of multiline insurers will fuel merger and acquisition (M&A) activities. At its latest meeting, the Federal Reserve raised the benchmark interest rate by 25 basis points under Chair Kevin Warsh, lifting the federal funds rate target range to 3.75%-4%. Insurers are direct beneficiaries of an improved rate environment. Investment income is expected to remain strong, given insurers’ diverse investment portfolio as well as the continued growth of private market investments. Also, an investment portfolio skewed toward fixed-income maturities provides some upside. Continued inflation also acts as a drag, making repairs, medical care, and replacement costs more expensive. Insurers’ focus on personalizing offerings to enhance customer experience and leveraging digitalization is the key. Given moderating pricing and increased competition, pricing competition will likely improve, according to an Insurance Business report.
About the Industry
The Zacks Multiline Insurance industry comprises companies that provide single insurance coverage, bundling automobile, homeowner, long-term care, and life and health insurance to individuals and businesses. The insured pays a single premium and is covered for many things through a single contract. These companies cover commercial and personal properties, automobiles, marine, livestock, aviation, personal accident, life, including permanent and term insurance, supplemental accident and health insurance, workers’ compensation, annuity products, private mortgage insurance, et al. The players also provide risk management services. Since the companies offer single insurance coverage for multiple products, customer retention improves. The insured stands to benefit from lower premium payments compared to paying individual premiums for insuring varied products.
4 Trends Shaping the Future of the Multiline Insurance Industry
Diversified Portfolio Supports Long-Term Growth: Multiline insurers benefit from diversified product portfolios, reducing reliance on any single business line and limiting concentration risk. Rising awareness of financial protection, increasing demand for customized insurance solutions and emerging opportunities in cyber, pet and green-energy insurance are expected to support premium growth. While lower interest rates may put pressure on life insurance earnings and catastrophe losses can affect non-life profitability, diversified operations and disciplined underwriting help mitigate these risks.
Softening Pricing Environment: Commercial insurance pricing is easing after several years of strong premium increases as improved industry capital levels and greater underwriting capacity intensify competition. With more insurers competing for quality business, pricing power is weakening, limiting premium growth and putting pressure on underwriting margins, especially if claims costs remain elevated. In this environment, disciplined underwriting, prudent risk selection and cost efficiency will be critical to sustaining profitability.
Merger & Acquisition Activity: Consolidation in the multiline insurance industry is expected to accelerate as insurers seek to expand across new products, markets and geographies while strengthening their competitive positions. Improved deal activity, particularly in technology-driven transactions, is likely to support growth following a slowdown caused by inflation. Insurers are increasingly acquiring insurtech firms to enhance digital capabilities, improve operational efficiency and deliver more innovative, customer-centric insurance solutions amid the industry's ongoing digital transformation.
Increased Adoption of Technology: Multiline insurers are increasingly adopting AI, advanced analytics, cloud computing, blockchain and automation to improve underwriting, claims processing and customer service. Digital distribution channels and real-time data enable more accurate risk assessment and personalized pricing. Continued investments in technology and analytics are enhancing operational efficiency, lowering costs and strengthening insurers' ability to compete in an increasingly digital marketplace.
Zacks Industry Rank Indicates Bright Prospects
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates strong prospects in the near term. The Zacks Multiline Insurance industry, housed within the broader Zacks Finance sector, currently carries a Zacks Industry Rank #108, which places it in the top 44% of 247 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is the result of a positive earnings outlook for the constituent companies in aggregate. The industry’s current year earnings estimates have been revised 2% upward in the last six months by analysts.
Before we present a few multiline insurance stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry vs. Sector and S&P 500
The Multiline Insurance industry has underperformed the sector and the Zacks S&P 500 composite in a year. The stocks in this industry have collectively gained 1.9% in a year compared with the Finance sector’s increase of 6.7% and the Zacks S&P 500 composite’s rise of 16.8% in the same time frame.
1-Year Price Performance
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Current Valuation
On the basis of its trailing 12-month price-to-book (P/B), which is commonly used for valuing insurance stocks, the industry is currently trading at 2.67X compared with the S&P 500’s 7.28X and the sector’s 4.37X.
Over the past five years, the industry has traded as high as 2.90X, as low as 1.34X and at the median of 2.52X.
Price-to-Book (P/B) Ratio (TTM)
Price-to-Book (P/B) Ratio (TTM)
5 Multiline Insurance Stocks to Add to Your Portfolio
We are presenting two Zacks Rank #1 (Strong Buy) stocks and three Zacks Rank #2 (Buy) stocks from the Multiline Insurance industry.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Oscar Health: Headquartered in New York, NY, Oscar offers a differentiated, technology-enabled approach to health insurance, with a strong focus on the Affordable Care Act marketplace. Continued membership growth, stronger underwriting discipline and increasing operating leverage position the company for sustained expansion. Expanding margins and long-term monetization of its technology platform add to the upside. Oscar Health sports a Zacks Rank #1.
The Zacks Consensus Estimate for OSCR’s 2026 and 2027 earnings indicates 208.3% and 21% year-over-year increases, respectively. The expected long-term earnings growth rate is pegged at 49.7%, better than the industry average of 13.2%. It has a VGM Score of A. The consensus estimate for 2026 and 2027 earnings witnessed an 18.8% and a 24% upward movement, respectively, in the past 30 days.
Price and Consensus: OSCR
Horace Mann Educators: Headquartered in Springfield, IL, it is the largest financial services company serving the U.S. educator market. Its niche focus, improved product offerings, better pricing and a strengthened distribution model are likely to benefit results. Earned premium growth ahead of loss cost growth is likely to favor the combined ratio. Continued share buybacks are expected to boost the bottom line. It carries a Zacks Rank #1.
The Zacks Consensus Estimate for HMN’s 2026 and 2027 earnings indicates a 1.5% and a 9.9% year-over-year increase, respectively. Horace Mann has a VGM Score of B.
Price and Consensus: HMN
The Zacks Consensus Estimate for AIZ’s 2026 and 2027 earnings indicates 12.9% and 5.2% year-over-year increases, respectively. The consensus estimate for 2026 and 2027 earnings witnessed 1.2% and 1% upward movement, respectively, in the past 30 days. It has a VGM Score of A.
Price and Consensus: AIZ
Principal Financial Group: Headquartered in Des Moines, Principal Financial Group is a global financial services company providing retirement solutions, asset management, insurance and employee benefits to businesses, individuals and institutional clients. Principal Financial benefits from a diversified mix of retirement, asset management, insurance and employee benefits, which supports recurring fees, premiums and investment income. Retirement deposits, participant engagement and international pension assets continue to expand, while higher AUM and margin gains support earnings scalability. The Beam Benefits acquisition should broaden reach in the small and mid-sized business market. Excess capital supports investment, dividends and buybacks for this Zacks Rank #2 insurer.
The Zacks Consensus Estimate for PFG’s 2026 and 2027 earnings indicates a year-over-year increase of 16.6% and 8.5%, respectively. The consensus estimates for 2026 and 2027 earnings have moved 2 cents and 5 cents north, respectively, in the past 30 days. The expected long-term earnings growth rate is pegged at 11.5%. It has a VGM Score of B.
Price and Consensus: PFG
The Zacks Consensus Estimate for PRU’s 2026 and 2027 earnings indicates 0.8% and 2.8% year-over-year increases, respectively. The consensus estimates for 2026 and 2027 earnings have moved 3 cents and 1 cent north, respectively, in the past 30 days. The expected long-term earnings growth rate is pegged at 4.6%. It has a VGM Score of B.
Price and Consensus: PRU
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