Life Insurance (Part 2). Revisiting the Sector...

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Life Insurance (part 1):    • Valuation of Insurance Companies.  

Life insurance companies are few and far between in the listed space. Some of the big names are HDFC standard life, Max life, ICICI prudential life and SBI life.

The way to ascertain value is not based on price to earnings but embedded value. The embedded value is determined by the policies signed in the present and earnings from the future earnings.

With India on growth path, it is compelling to consider buying insurance companies, however, one needs to see the Indian embedded value and the overall valuation to its peers in terms o EV.

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