5 Mid & Small-Cap Stock Picks From the Booming P&C Insurance Industry

Industry Overview - The Property and Casualty (P&C) insurance sector is expected to benefit from improved pricing, prudent underwriting, increased exposure, a favorable rate environment, and a strong capital position, positioning insurers for growth amid ongoing economic expansion [1] - The Zacks-defined Property & Casualty Insurance industry ranks in the top 18% of the Zacks Industry Rank, indicating an expectation to outperform the market over the next three to six months [2] Company Analysis Heritage Insurance Holdings Inc. (HRTG) - HRTG is a Zacks Rank 1 company providing personal and commercial residential insurance products in the U.S., with a projected revenue growth rate of 4.6% and earnings growth rate of 61.7% for the current year [6][7] - The Zacks Consensus Estimate for current-year earnings has improved by 33.7% over the last 30 days [7][9] Hagerty Inc. (HGTY) - HGTY, also a Zacks Rank 1, specializes in insurance services for collector cars and enthusiast vehicles, with expected revenue and earnings growth rates of 13.2% and 33.3%, respectively, for the current year [10][12] - The Zacks Consensus Estimate for current-year earnings has improved by 3.2% over the last 30 days [12] HCI Group Inc. (HCI) - HCI, ranked 2, is involved in property and casualty insurance, with expected revenue and earnings growth rates of 18.4% and over 100%, respectively, for the current year [13][15] - The Zacks Consensus Estimate for current-year earnings has improved by 3.7% over the last 30 days [15] Palomar Holdings Inc. (PLMR) - PLMR, a Zacks Rank 1, focuses on new business and strong premium retention, with expected revenue and earnings growth rates of 42.3% and 36.2%, respectively, for the current year [16][19] - The Zacks Consensus Estimate for current-year earnings has improved by 2.7% over the last 30 days [19] United Fire Group Inc. (UFCS) - UFCS, ranked 2, provides property and casualty insurance with expected revenue and earnings growth rates of 6.7% and -2.3%, respectively, for the current year [20][22] - The Zacks Consensus Estimate for current-year earnings has improved by 3.6% over the last 30 days [22]