Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Insurance Industry Analysis

UpdatedJan 25, 2026
DataAggregated Company Financials
Companies127
  • 7D-0.4%
  • 3M-0.6%
  • 1Y-2.6%
  • YTD-2.9%

The Insurance industry has been flat over the last week, but Prudential Financial has lost 3.6%. In line with that, the industry has also been flat over the past 12 months. Looking forward, earnings are forecast to grow by 6.3% annually.

Industry Valuation and Performance

Has the U.S. Insurance Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 25 Jan 2026US$1.3tUS$931.9bUS$99.8b12.7x13.3x1.4x
Tue, 23 Dec 2025US$1.4tUS$931.1bUS$99.3b13.3x14.1x1.5x
Thu, 20 Nov 2025US$1.4tUS$931.0bUS$99.2b12.7x13.8x1.5x
Sat, 18 Oct 2025US$1.3tUS$923.0bUS$89.5b13.2x14.9x1.4x
Mon, 15 Sep 2025US$1.4tUS$919.1bUS$88.6b14.4x15.9x1.5x
Wed, 13 Aug 2025US$1.4tUS$918.2bUS$88.4b14.4x15.6x1.5x
Fri, 11 Jul 2025US$1.4tUS$902.8bUS$82.1b14.4x17x1.6x
Sun, 08 Jun 2025US$1.5tUS$902.8bUS$82.3b14.9x17.7x1.6x
Tue, 06 May 2025US$1.4tUS$895.3bUS$84.9b14.1x16.8x1.6x
Thu, 03 Apr 2025US$1.5tUS$897.3bUS$92.9b14.4x16.2x1.7x
Sat, 01 Mar 2025US$1.4tUS$896.5bUS$93.2b13.3x15.6x1.6x
Mon, 27 Jan 2025US$1.4tUS$894.1bUS$91.8b12.7x14.8x1.5x
Wed, 25 Dec 2024US$1.4tUS$893.2bUS$91.1b13.1x15x1.5x
Fri, 22 Nov 2024US$1.4tUS$893.2bUS$91.0b13.5x15.6x1.6x
Sun, 20 Oct 2024US$1.4tUS$860.8bUS$89.4b14.2x15.9x1.7x
Tue, 17 Sep 2024US$1.4tUS$855.5bUS$87.0b14.3x15.9x1.6x
Thu, 15 Aug 2024US$1.3tUS$855.4bUS$87.0b13.4x14.8x1.5x
Sat, 13 Jul 2024US$1.2tUS$820.7bUS$79.0b13.5x15.1x1.5x
Mon, 10 Jun 2024US$1.2tUS$823.4bUS$79.2b12.7x14.9x1.4x
Wed, 08 May 2024US$1.2tUS$820.4bUS$79.2b13.2x14.8x1.4x
Fri, 05 Apr 2024US$1.2tUS$792.6bUS$66.9b14.7x17.8x1.5x
Sun, 03 Mar 2024US$1.1tUS$791.6bUS$66.6b14.9x17.1x1.4x
Tue, 30 Jan 2024US$1.2tUS$794.2bUS$49.9b12.8x23.3x1.5x
Thu, 28 Dec 2023US$1.1tUS$792.9bUS$47.7b12.8x22.9x1.4x
Sat, 25 Nov 2023US$1.1tUS$792.8bUS$47.5b12.6x23.2x1.4x
Mon, 23 Oct 2023US$1.0tUS$804.2bUS$40.0b14.6x25.8x1.3x
Wed, 20 Sep 2023US$1.1tUS$799.3bUS$38.7b14.9x27.3x1.3x
Fri, 18 Aug 2023US$1.0tUS$799.0bUS$38.6b15.2x26.4x1.3x
Sun, 16 Jul 2023US$974.2bUS$781.6bUS$37.8b15.2x25.8x1.2x
Tue, 13 Jun 2023US$964.1bUS$774.5bUS$35.1b15.3x27.4x1.2x
Thu, 11 May 2023US$974.0bUS$773.1bUS$35.9b15.8x27.1x1.3x
Sat, 08 Apr 2023US$966.4bUS$759.1bUS$44.1b15.3x21.9x1.3x
Mon, 06 Mar 2023US$1.0tUS$757.3bUS$44.1b17.5x23.2x1.4x
Wed, 01 Feb 2023US$1.1tUS$780.3bUS$53.6b16.1x19.6x1.3x
Price to Earnings Ratio

19.6x


Total Market Cap: US$1.1tTotal Earnings: US$53.6bTotal Revenue: US$780.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Insurance Industry Price to Earnings3Y Average 18.6x202420252026
Current Industry PE
  • Investors are pessimistic on the American Insurance industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 13.4x which is lower than its 3-year average PE of 18.6x.
  • The industry is trading close to its 3-year average PS ratio of 1.5x.
Past Earnings Growth
  • The earnings for companies in the Insurance industry have grown 23% per year over the last three years.
  • Revenues for these companies have grown 6.1% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Financials industry?

US Market-0.36%
Financials-2.23%
Insurance-0.41%
Reinsurance0.71%
General Insurance0.38%
Property and Casualty Insurance0.22%
Insurance Brokers-1.12%
Life and Health Insurance-1.58%
Industry PE
  • Investors are most optimistic about the Insurance Brokers industry even though it's trading below its 3-year average PE ratio of 37.1x.
    • Analysts are expecting annual earnings growth of 15.3%, which is higher than its past year's earnings growth of 11.6% per year.
  • Investors are most pessimistic about the General Insurance industry, which is trading below its 3-year average of 12.3x.
Forecasted Growth
  • Analysts are most optimistic on the Reinsurance industry, expecting annual earnings growth of 20% over the next 5 years.
  • This is better than its past earnings decline of 34% per year.
  • In contrast, the Property and Casualty Insurance industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
PGR ProgressiveUS$206.031.8%
+US$2.1b		-13.7%PE11.3x
LMND LemonadeUS$93.2517.4%
+US$1.0b		190.4%PS10.6x
ACGL Arch Capital GroupUS$92.962.5%
+US$834.1m		0.2%PE8.3x
PFG Principal Financial GroupUS$91.213.1%
+US$599.8m		11.5%PE12.7x
MRSH Marsh & McLennan CompaniesUS$183.160.4%
+US$372.3m		-16.4%PE21.7x

Latest News

FAF
US$63.51
First American Financial
7D
3.7%
1Y
2.7%
TRV
US$277.72
Travelers Companies
7D
3.1%
1Y
14.8%
AON
US$338.69
Aon
7D
-1.5%
1Y
-8.3%

AON: Capital Markets And Data Center Projects Will Support Future Upside Potential

Analysts have trimmed their price targets for Aon by a few dollars, reflecting slightly lower fair value estimates and modestly softer assumptions for revenue growth, margins, and future P/E as they factor in softening P&C pricing and potential growth headwinds for brokers. Analyst Commentary Street research on Aon is mixed, with some focusing on upside from execution and capital markets exposure, while others highlight pressure from softer property and casualty pricing and slower broker growth assumptions.
PFG
US$91.21
Principal Financial Group
7D
3.1%
1Y
11.5%

PFG: Capital Strength And Cash Returns Will Support Steady Future Performance

Analysts have nudged their price targets on Principal Financial higher, with recent moves such as US$74 to US$85, US$88 to US$92, and US$83 to US$87, reflecting updated views on capital strength, earnings quality, and sector wide pricing and margin trends. Analyst Commentary Recent research updates on Principal Financial Group show a mix of cautious and constructive views, with several firms adjusting price targets while keeping a close eye on sector specific trends in life and property and casualty insurance.
LMND
US$93.25
Lemonade
7D
17.4%
1Y
190.4%

LMND: Future Sector Softness Will Likely Undermine Optimism Around Profit Recovery

The analyst price target for Lemonade has moved higher to reflect a fair value estimate of about $67.11 per share, with analysts pointing to updated profit margin assumptions, a lower implied future P/E multiple, and a series of recent price target increases across the Street as key drivers of the change. Analyst Commentary Recent research commentary on Lemonade focuses on how the company is progressing against long term execution goals, how quickly it can scale to justify current valuation, and how its business model might hold up through the insurance cycle.
ORI
US$37.94
Old Republic International
7D
-11.9%
1Y
4.7%
PGR
US$206.03
Progressive
7D
1.8%
1Y
-13.7%
ACGL
US$92.96
Arch Capital Group
7D
2.5%
1Y
0.2%
AFL
US$107.09
Aflac
7D
-2.2%
1Y
2.1%

AFL: Future Returns Will Balance Capital Strength With Cyber And Sector Headwinds

Narrative Update on Aflac Aflac's updated analyst price target edges lower to about $111, as analysts moderate expectations for revenue growth and margins while still citing capital strength, cash flow, and sector consolidation as key supports. Analyst Commentary Recent research on Aflac reflects a mix of optimism about capital strength and cash flow, alongside caution around industry headwinds and valuation expectations.
ALL
US$193.65
Allstate
7D
0.7%
1Y
4.1%

ALL: Higher Margins And Buybacks Will Support Stronger Long-Term Upside

Analysts have lifted their price target on Allstate from US$275 to about US$290, citing updated assumptions that include adjusted revenue growth expectations, a different discount rate, a revised profit margin outlook, and a slightly lower future P/E multiple. What's in the News Allstate estimated catastrophe losses of US$83 million, or US$65 million after tax, for October 2025 from five wind and hail events, highlighting recent weather related impacts on results (Corporate Guidance: Unusual Events).
AJG
US$253.21
Arthur J. Gallagher
7D
-2.1%
1Y
-12.5%

AJG: Life Deals And Contingents Will Drive Recovery Through 2026

Analysts have trimmed their blended price target for Arthur J. Gallagher by about US$8 to reflect lower assumed fair value and P/E multiples, while incorporating recent research that highlights softer P&C pricing, near term organic growth and margin headwinds, and timing issues around AssuredPartners and large life deals.
PRU
US$107.69
Prudential Financial
7D
-3.6%
1Y
-8.2%

PRU: Capital Strength And Life Margins Will Support Balanced Outlook

Analysts have nudged their blended price targets on Prudential Financial slightly higher, with our fair value estimate moving by about US$1 to US$119.36 as they factor in updated views on profit margins, modestly lower revenue growth assumptions, and a slightly higher future P/E multiple following recent target increases from several firms. Analyst Commentary Recent research on Prudential Financial has centered on modestly higher price targets and how the company might balance growth, margins, and capital over the next few years.
MRSH
US$183.16
Marsh & McLennan Companies
7D
0.4%
1Y
-16.4%

MRSH: Future Earnings Should Prove Resilient As P And C Cycle Softens

Analysts trimmed their blended price target for Marsh & McLennan Companies by about $4 to reflect a slightly lower fair value estimate of $207 per share, citing softer pricing trends in parts of the P&C cycle, emerging growth headwinds for brokers, and a modest reset in future P/E expectations, despite steady margin assumptions. Analyst Commentary Recent Street research shows a fairly balanced split between bullish and bearish voices on Marsh & McLennan, with price targets clustered around the high $100s to low $200s and ratings that range from Underperform to Overweight.
WTW
US$322.81
Willis Towers Watson
7D
-2.0%
1Y
0.1%
CINF
US$157.03
Cincinnati Financial
7D
-3.2%
1Y
14.4%

CINF: Calm Q3 And Share Buybacks Will Shape Balanced 2025 Outlook

Narrative Update The analyst price target for Cincinnati Financial has shifted modestly higher to US$174.67 from US$172.67 as analysts factor in updated Street research that includes a mix of target increases and trims, along with revised views on pricing conditions and earnings forecasts. Analyst Commentary Recent research around Cincinnati Financial shows a mix of optimism on execution and earnings power, paired with caution on pricing trends across property and casualty insurance lines.
MET
US$75.81
MetLife
7D
-1.3%
1Y
-11.9%