Last Updated on Apr 26, 2022 by Aradhana Gotur

The insurance market in India is steadily growing as the awareness for insurance is rising among the masses. The ongoing pandemic can also be considered a major contributing factor to the same. According to IRDAI’s annual report for 2021, insurance penetration in India increased to 4.20% for FY 2020-2021 compared to 3.76% in FY 2019-2020.

Moreover, there have been many changes in the insurance sector recently. Many insurers have gone public and have listed themselves on the Indian stock exchanges. So, if you invest in stocks, you can additionally pick the stocks of listed insurance companies and benefit from their profitability.

This article covers:

While multiple insurers are listed on the Indian stock exchange, here’s a list of the top 7 companies:

Name of the insurerTicker IDMarket capitalisation (lakh cr.)Closing price as of 17 January 2022
HDFC Life Insurance Company Limited HDFCLIFERs. 1,31,712.6Rs. 674.15
SBI Life Insurance Company LimitedSBILIFERs. 1,20,974.2Rs. 1287.95
ICICI Prudential Life Insurance Company Limited ICICIPRULIRs. 81,522.9Rs. 615.65
ICICI Lombard General Insurance Company Limited ICICIGIRs. 6,91,194.3Rs. 1432.35
Star Health and Allied Insurance Company Limited STARHEALTHRs. 44,861.9Rs. 858.60
General Insurance Corporation of IndiaGICRERs. 24,579.1Rs. 141.30
New India Assurance Company Limited NIACLRs. 22,989.6Rs. 140.85

Let’s dive into the key financial metrics of these listed insurers.

HDFC Life Insurance Company Limited 

Formed as a joint venture between HDFC Limited and Standard Aberdeen PLC, HDFC Life is a leading life insurance provider in India. The company has been recording strong financial growth in the past few years. Have a look:

  • The company’s revenue has grown at an average annual rate of 31.58% over the last 5 yrs. This growth is more than the industry average growth rate of 25.71%.
  • The company has also increased its market share from 13.15% to 16.66% in the last 5 yrs.
  • As far as the income is concerned, the company has been delivering industry-beating returns of 10.75% annually.
  • The P/E ratio of the company stands at 104.62 as of 17 January 2022.

SBI Life Insurance Company Limited

Established in the year 2000, SBI Life is listed on both the NSE and the BSE. The company has an authorized share capital of Rs. 20 bn. and a paid-up share capital of Rs. 10 bn. The key financial highlights of the company are as follows:

  • The P/E ratio of the company is 88.49 as of 17 January 2022 and it has a dividend yield of 0.20%.
  • In the last 5 yrs, the company’s revenue grew at an average annual rate of 33.59%, and its income grew by 11.52%.
  • SBI Life increased its market share from 14.01% to 19.16% in a span of 5 yrs.

ICICI Prudential Life Insurance Company Limited

ICICI Prudential was the first life insurance company to list on the Indian stock exchange. It was launched in 2001 and is a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Limited. The financial highlights of the company are as follows:

  • The company crossed the AUM milestone of Rs. 1 tn., and as of 30 September 2021; the AUM was recorded at Rs. 2.37 tn.
  • It is a large-cap company, and its stock is ranked at 60 in SEBI’s list of companies.
  • The P/E ratio is 92.54 as of 17 January 2022.
  • The market share of ICICI Prudential rose from 15.02% to 19.64%.

ICICI Lombard General Insurance Company Limited

One of India’s largest general insurance providers, ICICI Lombard has issued more than 26.2 mn. policies and has settled more than 1.86 mn. claims at the end of the FY 2019-2020. The key financial highlights of the company are as follows:

  • It is a large-cap stock ranking among the top 100 companies.
  • The P/E ratio is 47.73 as of January 17 2022.
  • While the industry delivered an average net income of 5.61%, the company delivered an average return of 23.76% annually over the last 5 yrs.

Star Health and Allied Insurance Company Limited

A leading name in the general insurance segment, Star Health is a standalone health insurance provider. The company has settled more than 5.2 mn. claims since it began operations in 2006. The key financial details of the company are as follows:

  • Ever since it was formed, the company has insured more than 169 mn. lives.
  • As of 31 March 2020, the company’s net worth stood at Rs. 1889 cr.
  • The company’s average annual revenue of 27.84% closely matches the industry’s average revenue of 25.71% in the last 5 yrs.
  • Star Health also increased its market share marginally from 1.15% to 1.26% in the last 5 yrs.

General Insurance Corporation of India

General Insurance Corporation has been ranked 13th in the largest Global Reinsurer Group. The company is the only reinsurer (a company that provides financial protection to insurance companies) in India, and it operates in the international markets too. The financial highlights of the insurer are as follows:

  • The P/E ratio is 12.45 as of 17 January 2022.
  • In FY 2021, the company’s EPS was 11.35.
  • The average annual growth in the revenue is 19.57% over the last 5 yrs.

New India Assurance Company Limited 

A public sector general insurance company owned by the Government of India, New India Assurance was founded way back in 1919 by Sir Dorabji Tata. The company has business operations in India as well as abroad. The key financial highlights are listed below:

  • In March 2021, the company’s global business exceeded Rs. 31,573 cr. and Indian business crossed Rs. 28,548 cr.
  • The company’s P/E ratio stands at 14.15 as of 17 January 2022.
  • The company’s net income grew 11.28%, and revenue grew 11.89% annually in the last 5 yrs.

Note – Data of all insurance companies has been taken from the Tickertape website’s official stock pages and the respective insurance company websites. The closing price of the stocks has been taken from NSE.

Conclusion

These are some of the top insurers listed in the Indian stock market. You can pick these stocks and diversify your portfolio in the BFSI sector. Study the financial metrics of the stocks that you pick and then choose the best-performing stocks for enhancing the profitability of your portfolio. Consult your financial advisor before investing in any insurance stock or scheme.

Ayushi Mishra

1 Comment

  1. Mam I think your are putting wrong market cap of ICICI Lombard general you have put 6,61,000 crore mcap,it’s market cap is 61,000 crore only

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