Insurance companies come among the top picks for long-term investments. Not only do they make a great addition to any investor’s stock portfolio, but they also remain stable or do well during recessions, strong economies and anytime in between.
The insurance industry remained strong even in the midst of the global crisis and uncertainty caused by the pandemic.
This gives the industry huge potential for growth and also makes it attractive for investments.
The crisis caused by the Coronavirus has forced those people to buy insurance, who otherwise wouldn’t.
With this in mind, let’s walk you through things that you should know about the insurance sector and factors that will help you to choose insurance stocks in India from the point of view of investment.
In addition to this, we also take a look at the top insurance stocks in India. Keep reading to find out!
Top Insurance Stocks in India
Let’s take a look at some of the top insurance stocks in India, that are listed. The first three stocks are from the life insurance sector and the next two are from the non-life insurance or general insurance sector.
This section gives details about these companies and we have compared them on the basis of various parameters in the next section. The companies here are ranked on the basis of market capitalization, in descending order.
Insurance Stocks in India #1 – HDFC Life Insurance Company Ltd.
HDFC Life Insurance company is engaged in carrying on the business of life insurance and offers a range of individual and group insurance solutions. It comprises various insurance and investment products like Protection, Pension and Savings.
HDFC Life has a diversified product mix and distribution mix that helps it to tackle the cyclicality of capital markets as well as changes in regulations and the macro environment.
It has tied up with 270 partners for selling protect policies and uses their data from these products to sell other insurance products.
HDFC Life has recently added IDFC First Bank, RBL Bank, and Bandhan Bank as bancassurance partners. It has an established market position in the life insurance industry and boasts a market share of 36% as of 30th September 2021.
Insurance Stocks in India #2 – SBI Life Insurance Company Ltd
It was started as a joint venture between the State Bank of India and BNP Paribas Cardif, a French Institution. SBI has a 55.50% stake in it. It carries on the business of life insurance and annuity.
SBI Life Insurance Company Ltd has an extensive presence across India with 947 offices and a network of 1,35, 902 agents, 14 bancassurance partners, 64 corporate agents, 110 brokers and 29,000 partner branches.
Insurance Stocks in India #3 – ICICI Prudential Life Insurance Company Ltd
ICICI Prudential Life Insurance Company Ltd. carries on the business of providing life insurance, pensions and health insurance and ULIPs. When it comes to ownership ICICI has a 51% stake in it and Prudential PLC has a 22% stake.
It started with an AUM of ~120 crores in 2001 and its AUM in FY21 was ~2.1 lakh crores. The company has a diversified product portfolio and product mix.
It has multiple distribution channels that include 520 company branches, 38000+ partner branches,188000 agents and 23 bancassurance partners.
Insurance Stocks in India #4 – ICICI Lombard General Insurance Co Ltd
It is one of the leading and established general insurance companies in the private sector. It offers a well-diversified range of products and risk management solutions.
The company approximately holds an 8.3% market share in the general insurance industry. In 2021, it acquired Bharti AXA General Insurance Company.
It has a strong mix of distribution channels that included 280 branches, 850 virtual offices, 9700 garages, 9300 hospitals and 59500 individual agents.
Insurance Stocks in India #5 – General Insurance Corporation of India
It is engaged in the business of reinsurance. This means that multiple insurance companies share risk by purchasing insurance policies from other insurers to limit their own total loss.
In 1972, the Government of India incorporated this company to look after four companies namely National Insurance Company Limited, The Oriental Insurance Company Limited, The New India Assurance Company Limited, and United India Insurance Company Limited.
The General Insurance Corporation of India has a presence in many countries and has a diversified portfolio.
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