5 Factors to look out for Life Insurance Stocks
INTRODUCTION ICICI Prudential Life Insurance Co. was the first to get listed in 2016, followed by SBI Life Insurance Co. Ltd and HDFC Standard Life Insurance Co. Ltd in 2017. With low insurance penetration and density rates, there is an untapped market where the private sector has immense opportunities to consolidate its positions, considering insurance is a long-term business. This report intends to gather various ratios from the Financials of the above three companies to evaluate how well they are fair by ranking them under metrics discussed below and consequently assessing whether the stock should be bought, held, or sold. FACTORS Market Cap The following is a graph depicting the market cap of the companies at the time of listing and its market cap as of November 26, 2011. HDFC Life has the highest market cap, followed by SBI Life and ICICI Pruli. Hence the rankings under this metric stand as follows. EV Multiple EV Multiple is calculated as the ratio of Enterprise Value to EBITDA....