Insurance Stocks
Insurance stocks offer exposure to companies that provide life, health, and general insurance services. As financial awareness grows and regulatory support increases, insurance is becoming an essential pillar of household financial planning in India. Top insurance stocks benefit from long-term premium inflows, growing retail participation, and rising demand for financial protection and security.
List of Insurance Stocks
| Company Name | Market Price | Market Cap | 52W Low | 52W High | Prev. Close | 1W Return | 1M Return | 6M Return | 1Y Return | 3Y Return | Dividend Yield | PE Ratio | Industry PE |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
872.45 -15.75 (-1.77%)â–¼ | 551824.42 | 715.3 | 1048.9 | 888.2 | -2.36 % | -1.79 % | 10.88 % | -15.14 % | 38.36 % | 1.38 | 11.34 | 18.63 | |
1,798.80 -11.00 (-0.61%)â–¼ | 180341.93 | 1372.55 | 1913 | 1809.8 | -2.33 % | -0.98 % | 16.71 % | -5.24 % | 42.78 % | 0.15 | 72.47 | 18.63 | |
764.40 -0.65 (-0.08%)â–¼ | 164762.41 | 584.3 | 820.75 | 765.05 | -2.28 % | -1.57 % | 14.36 % | 4.78 % | 46.23 % | 0.27 | 88.01 | 18.63 | |
1,894.00 +12.20 (+0.65%)â–² | 94219.99 | 1613.7 | 2278.8 | 1881.8 | 1.50 % | 1.14 % | 6.86 % | -16.10 % | 65.33 % | 0.66 | 35.23 | 18.63 | |
585.50 -9.50 (-1.60%)â–¼ | 84708.19 | 525.8 | 796.8 | 595 | -2.83 % | -5.00 % | -0.55 % | -25.15 % | 9.41 % | 0.15 | 66.85 | 18.63 | |
359.70 -0.40 (-0.11%)â–¼ | 63105.77 | 347 | 525.5 | 360.1 | -1.19 % | -3.59 % | -14.39 % | -10.06 % | 201.89 % | 2.78 | 8.5 | 18.63 | |
350.85 +0.35 (+0.10%)â–² | 32394.36 | 264.6 | 404 | 350.5 | 0.44 % | -5.42 % | 20.40 % | -1.28 % | 0.00 % | 0 | 70.16 | 18.63 | |
187.89 -6.71 (-3.45%)â–¼ | 30964.27 | 135.6 | 240 | 194.6 | -6.66 % | -1.38 % | 18.65 % | -20.33 % | 125.42 % | 0.96 | 26.7 | 18.63 | |
445.85 -10.05 (-2.20%)â–¼ | 26213.75 | 327.3 | 618.7 | 455.9 | -0.81 % | 2.48 % | 26.29 % | -26.79 % | -36.19 % | 0 | 44.44 | 18.63 | |
80.47 -0.51 (-0.63%)â–¼ | 14852.44 | 68.54 | 109.34 | 80.98 | -2.33 % | -3.48 % | 12.51 % | 0.00 % | 0.00 % | 0 | 106.04 | 18.63 | |
528.05 -18.15 (-3.32%)â–¼ | 3730.67 | 415.25 | 689.25 | 546.2 | -1.70 % | -3.16 % | 17.07 % | -17.05 % | 0.00 % | 0 | 114.67 | 36.42 |
What are insurance stocks?
Insurance stocks are shares of companies that offer risk coverage products—such as life insurance, health insurance, motor insurance, home protection, and business liability policies. These companies earn revenue through premiums and generate income by investing these funds in various asset classes until claims arise.
The sector is divided into life insurers (focused on death, savings, and retirement plans) and general insurers (covering medical, vehicle, travel, and property risks). Insurance penetration in India remains relatively low, offering room for long-term growth. These stocks often appeal to investors looking for steady, recurring income businesses with regulated growth patterns.
Why invest in insurance stocks?
- Underpenetrated market: Large uninsured population presents massive growth potential.
- Recurring premium income: Regular premiums offer predictable revenue flows.
- Rising financial awareness: More individuals are buying life and health cover.
- Favourable regulations: Policy changes support expansion and digital distribution.
- Digital distribution growth: Online sales reduce costs and expand reach.
- Strong brand loyalty: Long-term contracts and service quality drive customer retention.
- Demographic tailwinds: Younger population ensures decades of premium inflows.
Advantages of investing in insurance stocks
- Long-term premium flows: Regular policy renewals create stable cash inflows.
- Asset light business model: Unlike manufacturing, insurers don’t need heavy physical assets.
- High Return on Equity (RoE): Profitability from float income and underwriting gains.
- Diversified product portfolio: Mix of term, ULIP, motor, health, and group insurance reduces risk.
- Tax benefits drive demand: Sections 80C and 80D incentivise insurance purchases.
- Institutional investments: Insurers manage large AUM, benefiting from market rallies.
- Protection products in demand: The COVID-19 pandemic has increased focus on life and health coverage.
- Faster claims processing: Technology adoption has improved customer trust and turnaround time.
Points to consider before investing in insurance stocks
- Valuation premiums: Insurance stocks often trade at high multiples due to growth potential.
- Underwriting risk: High claim ratios can dent profitability.
- Investment market dependence: Returns from invested premiums are linked to market performance.
- Regulatory sensitivity: IRDAI rules affect product design, pricing, and capital adequacy.
- Customer churn: Lapsed or surrendered policies impact cash flows.
- Low penetration of pure protection plans: Most buyers still prefer savings-linked policies.
- Distribution costs: High commissions and agency costs can reduce margins.
- Product complexity: ULIPs and combo plans may face customer resistance without education.
- Claim fraud risks: Managing fraudulent claims requires strong systems and checks.
- Dependency on interest rates: Fixed income returns influence profitability for traditional plans.
How to invest in insurance stocks
- Open a demat and trading account: Get started through a SEBI-registered brokerage.
- Understand business segments: Distinguish between life, health, and general insurance offerings.
- Track premium metrics: Review Gross Written Premium (GWP), persistency ratio, and claim settlement ratio to identify the best insurance stocks.
- Check Embedded Value (EV): EV reflects present value of future profits and current net worth.
- Assess product mix: A balanced share of protection and savings products is ideal.
- Review solvency ratio: Indicates capital adequacy to settle future claims.
- Analyse investment book: Evaluate asset allocation and market exposure of invested funds.
Insurance Stocks FAQs
Are there risks associated with investing in insurance stocks?
Yes. Even the best insurance stocks carry risks like high claims, regulatory changes, market-linked investment returns, and underwriting errors. Cyclical downturns or natural calamities can lead to elevated claim payouts.
Is diversification important when investing in insurance stocks?
Yes. Investing in a mix of life, health, and general insurers helps balance exposure to different customer segments, claims patterns, and business cycles.
How to identify promising insurance stocks?
Look for consistent premium growth, high claim settlement ratios, strong brand presence, scalable distribution, and healthy solvency margins. Growth in protection product sales is also a key indicator.
How to analyse the financial performance of insurance stocks?
Focus on GWP growth, persistency ratio, combined ratio (for general insurance), EV growth, and return on equity. Also monitor claim ratios and investment income contribution.
How does the insurance sector perform during downturns or recessions?
Insurance remains relatively resilient as life and health products are long term. However, non-life segments like motor or travel insurance may see demand dips during economic slowdowns.
Is it worth investing in the insurance sector?
Yes. With low penetration, favourable demographics, and digital adoption, insurance offers long-term structural growth and steady returns, especially in a financially evolving economy like India.
Disclaimer: By referring to any particular sector, Kotak Securities Limited does not provide any promise or assurance of favourable view for a particular industry or sector or business group in any manner. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and take professional advice before investing. Such representations are not indicative of future results. The securities are quoted as an example and not as a recommendation.