Friday’s mixed jobs report extended the broader selloff in markets this week with September known to be the most volatile month of the year.

Amid heightened market volatility investors may want to consider several insurance stocks that have made their way onto the coveted Zacks Rank #1 (Strong Buy) list.

Specifically, three of these highly ranked insurance stocks hail from the Zacks Insurance-Property and Casualty Industry which is currently in the top 18% of over 250 Zacks industries.

Considering insurance businesses tend to be stable due to their necessity, these top stocks also have beta ratios under the preferred level of 1.0 which suggests they should be less volatile than the broader market.

Heritage Insurance HRTG

Providing personal residential insurance for single-family homeowners and condominium owners, Heritage Insurance’s stock stands out with an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.

Heritage has been a prime beneficiary of the broader industry’s improved outlook with the company expanding its commercial residential business. This has led to strong organic growth with Heritage shares soaring over +100% year to date but having a beta ratio of 0.97.

Image Source: Zacks Investment Research

Notably, HRTG is only 8% from its 52-week high of almost $17 and has skyrocketed more than 200% from its low of $4 over the last year. Despite the incredible rally, HRTG trades at just 8.4X forward earnings with EPS expected to be up 10% in fiscal 2024 and projected to increase another 18% in FY25 to $2.28 per share.

Furthermore, over the last 30 days, earnings estimate revisions for FY24 and FY25 have soared 33% and 26% respectively.

Image Source: Zacks Investment Research

ProAssurance PRA

Checking in with a beta of just 0.23 is ProAssurance, a holding company whose subsidiaries provide professional liability insurance products to physicians and dentists among other healthcare providers.

Image Source: Zacks Investment Research

As suggested in its very low beta ratio, ProAssurance shares should have minimal downside risk from current levels and have already made the case for being oversold considering its increased profitability. More importantly, PRA now trades under $15 and at a far more reasonable 23.1X forward earnings multiple with high double-digit EPS growth in the forecast for FY24 and FY25.

While it may be too soon to say ProAssurance shares are indeed in oversold territory, PRA traded at a forward earnings high of 322X earlier in the year with a median of 41.2X. Plus, earnings estimates have soared 52% in the last month for FY24 with FY25 EPS estimates spiking 16%.