3 Insurers to Focus on as Insurance Pricing Momentum Moderates

In the U.S. insurance industry, rate increases have substantially improved insurer profitability, particularly in personal auto, homeowners, and commercial P&C over the years. But now the U.S. insurance industry is transitioning from a rate-driven growth environment to an execution-driven one as it moves from the hard-market phase toward a more competitive environment. 

In commercial insurance, pricing increased just 2.5% year over year in the first quarter of 2026, down from 5.3% a year earlier, marking the third consecutive quarter of moderating increases. Swiss Re expects U.S. P&C premium growth to slow to about 3% in 2026 as attractive margins draw additional capacity into the market.

With pricing power weakening, insurers with superior risk selection, claims management and expense control should outperform competitors. Increased competition is already pushing auto premiums lower. After years of relentless rate increases, the Bureau of Labor Statistics reports that the Consumer Price Index for motor vehicle insurance fell 4.5% from July 2025 to July 2026.

Strong insurer balance sheets, stabilized reinsurance pricing and increased underwriting appetite are creating new opportunities for many organizations to improve coverage terms while managing insurance costs. According to Alera Group, average overall commercial insurance premium growth was flat in the first half of 2026, reflecting the softest market conditions seen since 2017. 

As the U.S. insurance pricing cycle moderates, premium growth increasingly depends on underlying business growth rather than on rate increases. The quality of growth increasingly depends on an insurer's ability to generate organic new business, retain customers, benefit from exposure growth and capture market share, while maintaining underwriting discipline.

Here's how these factors will benefit insurers. Winning new customers adds policies and premiums even when insurers cannot rely on higher rates. Growth in payrolls, property values, vehicle counts, business activity, construction and other economic exposures can increase insured values and therefore premiums, even with stable pricing. High retention also reduces the need to continually replace lost customers through costly new-business acquisition. 

Insurers can grow faster than the overall market by taking business from competitors. This can come from stronger underwriting capabilities, broader product offerings, better service, geographic expansion or more effective distribution. 

These factors in combination allow insurers to sustain premium and revenue growth despite softer pricing.

For insurance stocks such as The Travelers Companies, Inc. TRV, Chubb Limited CB and W.R. Berkley Corporation WRB, strong underwriting discipline and specialty exposure can help protect profitability as the pricing cycle softens.

Price Performance

The insurance industry has returned 3.2% in the past year compared with the Finance sector’s growth of 11.5% and the Zacks S&P 500 composite’s appreciation of 20.8%.

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3 Insurers to Watch

With the help of the Zacks Stock Screener, we have selected three insurance stocks with an impressive Value Score of B. TRV carries a Zacks Rank #2 (Buy), while CB and WRB have a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Based in New York, The Travelers provides a wide variety of property and casualty insurance and surety products and services to businesses, organizations and individuals in the United States and select international markets. Strong renewal rate change, retention and increased new business, supported by a compelling portfolio and a solid capital position, poise TRV well for growth. The company raised its dividend for 22 consecutive years, with an 8% compound annual growth rate over that period. The insurer also has a favorable VGM Score of B.  

The Zacks Consensus Estimate for The Travelers’ 2026 earnings per share indicates a year-over-year increase of 22.6%.

The consensus estimate for 2027 revenues indicates an increase of 2.9% from the 2026 estimates.

The consensus estimate for 2026 and 2027 has moved 4.1% and 1.1% north, respectively, in the past 30 days. Earnings have grown 19.2% in the past five years. The expected long-term earnings growth rate is pegged at 3.1%. TRV delivered a four-quarter average earnings surprise of 41.68%. Shares of TRV have rallied 36% in the past year.

Headquartered in Zurich, Switzerland, Chubb Limited is one of the world’s largest providers of property and casualty insurance and reinsurance and the largest publicly traded P&C insurer based on market capitalization. Chubb Limited is poised for long-term growth as it capitalizes on the potential of middle-market businesses (both domestic and international) as well as enhances traditional core packages and specialty products. Investments in various strategic initiatives bode well for growth. It focuses on cyber insurance, which has immense room for growth. This insurer has increased dividends for 33 straight years. 

The Zacks Consensus Estimate for Chubb’s 2026 earnings per share indicates a year-over-year increase of 10.8%. The consensus estimate for revenues is pegged at $64.33 billion, implying a year-over-year improvement of 7.2%.

The consensus estimate for 2027 earnings and revenues indicates an increase of 5.1% and 4.1%, respectively, from the 2026 estimates.

The consensus estimate for 2026 and 2027 has moved 1.4% and 0.5% north, respectively, in the past 30 days. Earnings have grown 19.7% in the past five years. The expected long-term earnings growth rate is pegged at 7.5%. CB delivered a four-quarter average earnings surprise of 13.7%. CB shares have rallied 26% in the past year. 

Greenwich, CT-based W.R. Berkley is one of the nation’s largest commercial lines property casualty insurance providers. The company offers a variety of insurance services, from reinsurance to workers' comp third-party administrators.

WRB has consistently benefited from its insurance business, with premiums written increasing over the past many years. WRB has been investing in numerous startups since 2006 and establishing new units in growing international markets. WRB’s international business is poised for growth, supported by emerging markets. A solid capital position enables capital deployment. Investment in alternative assets should help improve investment income. The insurer also has a favorable VGM Score of B. 

The Zacks Consensus Estimate for W.R. Berkley’s 2026 earnings per share indicates a year-over-year increase of 11.7%. The consensus estimate for revenues is pegged at $15.05 billion, implying a year-over-year improvement of 3.2%.

The consensus estimate for 2027 revenues indicates an increase of 3.1% from the 2026 estimates.

The consensus estimate for 2026 has moved 1.89% north in the past 30 days. Earnings have grown 22.5% in the past five years. WRB earnings surpassed estimates in three of the last four quarters and missed in one, the average surprise being 8.37%. Shares of the insurer have lost 2% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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