How Insurance Stocks Could Be Your Ticket to Seven Figures

Want to build serious wealth? Most investors skip over insurance companies while chasing flashy tech stocks. But here’s the thing: insurance is one of the best insurance company to invest in sectors precisely because it’s unsexy and stable. The business model is almost unfairly profitable. Insurance companies collect premiums upfront, then invest that money (known as float) before paying out claims. That’s essentially playing with other people’s money and keeping the returns. Plus, when inflation hits, premiums rise naturally along with claim costs—the industry self-adjusts.

If you’re willing to think long-term, three major insurers could genuinely help you hit that million-dollar portfolio milestone.

Option 1: The Balance Sheet Fortress

Prudential Financial (NYSE: PRU) isn’t messing around when it comes to financial stability. The company literally built its entire brand around Gibraltar as a symbol—unshakable, permanent, rock-solid. And the numbers back it up: over $320 billion in bonds and more than $28 billion in total net equity.

Why does this matter? Because insurance companies sometimes misjudge risk. When claims exceed expectations, a fortress balance sheet like Prudential’s keeps the lights on and investors safe. That’s not flashy, but it’s everything when you’re trying to compound wealth over decades. You need companies that will still be there in 30 years, and Prudential fits that profile.

Option 2: The Insurance-to-Empire Pipeline

Berkshire Hathaway (NYSE: BRK.A, BRK.B) took the insurance float concept to an extreme—and it worked spectacularly. Warren Buffett transformed insurance premiums into an investment war chest that now funds BNSF Railroad, Duracell, Dairy Queen, NetJets, and a massive portfolio of public market holdings.

The genius move? Insurance generates steady, predictable cash that Buffett deploys into businesses and stocks. That layered approach—insurance operations plus diversified subsidiaries plus public market investments—creates multiple paths to returns. For wealth-builders, this means exposure to both the insurance advantage and Buffett’s legendary capital allocation skills.

Option 3: The Hidden Insurance Play

CVS Health (NYSE: CVS) tricks people because pharmacies are the obvious story. But since acquiring Aetna, insurance now represents a major chunk of revenue. Recent earnings disappointments tanked the stock—which might be the opportunity, not the risk.

Here’s where it gets interesting: analysts are modeling $7.40 EPS in 2024 and $8.22 in 2025, yet the stock sits at $55.90. That’s a valuation of just 7.6x 2024 earnings and 6.8x 2025 earnings—absurdly cheap for a stable business. Pair that with a 4.8% yield and you’re looking at solid dividend income plus potential capital appreciation as the market reprices the company.

The Wealth-Building Reality

Getting to seven figures requires patience and time. The earlier you commit capital to quality holdings, the better your odds. Insurance stocks won’t excite your friends at parties, but compounding returns over 20-30 years in stable, profitable businesses—especially the best insurance company to invest in choices—is exactly how millionaires get built.

Start today. Your future self will thank you for the decision.