Sakshi Batra does a 3 point analysis of H1FY19 earnings of ICICI Prudential Life Insurance and HDFC Standard Life Insurance to find which stock offers better value.
Listed private insurers are witnessing accelerated growth. We are enthused by private insurers’ improving profitability metrics in general and changing the business mix in particular. The low insurance penetration along with increasing persistency ratios and growth of protection business are key drivers of the profitable growth for the insurance companies.
Buoyant capital markets too have helped insurance companies’ improve their profitability as the sector has witnessed growth especially for products like ULIPs and improvement in persistency.
Going forward, we see large share of growth emanating from the protection business as there exists a huge opportunity in this segment. Given the promising sectoral outlook, which life insurance company’s stock is a worthy investment consideration at this juncture?