There are a number of insurance stocks in India that investors can consider for their portfolios. While all of these stocks come with some risk, they also offer the potential for significant returns.
What are insurance stocks and what do they offer investors
Insurance stocks are a type of investment that offers the potential for significant returns while also providing some protection against loss. There are a number of insurance companies in India that offer a variety of insurance products, such as life insurance, health insurance, and car insurance. While all of these products come with some risk, they also offer the potential for significant returns.
List of Best Insurance Stocks in India
Here are the list of 10 best insurance stocks in India to consider for your portfolio
1. SBI Life Insurance Company Ltd
If you’re looking for a stable and reliable insurance stock to invest in, SBI Life is a great option. The company has been in business since 2001, and it offers a wide range of insurance products to choose from. What’s more, SBI Life is 55.50% owned by State Bank of India, one of the largest banks in India, so you know it’s a company you can trust.
- State Bank of India is a large and reliable bank
- SBI Life has been in business since 2001
- Offers a comprehensive range of insurance products
- Stable and reliable company
2. ICICI Prudential Life Insurance Company Ltd
ICICI Prudential Life Insurance Company Ltd is a joint venture between ICICI Bank, India’s second-largest bank by assets and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential Life insurance plans are the best in the industry and offer various insurance policies like term insurance, child insurance, retirement plans, etc.
ICICI Prudential offers a wide range of insurance products to choose from, making it a great choice for investors looking for an insurance stock to invest in. The company has a strong partnership with ICICI Bank, one of the largest banks in India, which gives it a lot of credibility. In addition, ICICI Prudential offers some of the best insurance plans in the industry, so you know you’re getting a quality product from this company.
- Strong partnership with ICICI Bank
- Offers a wide range of insurance products
- Some of the best insurance plans in the industry
3. HDFC Life Insurance Company Ltd
HDFC Life insurance company is a joint venture between Housing Development Finance Corporation Limited (HDFC) and Standard Life Aberdeen. HDFC holds 52.14% stake in the company and Standard Life Aberdeen has 35.87% stake while the remaining 12% is held by other shareholders. The current value of the company is Rs. 1,194 billion.
HDFC Life insurance offers a wide range of insurance plans such as term insurance, women’s insurance, child insurance, health insurance, and retirement plans. You can choose the plan that best suits your needs and budget. The company also offers online insurance plans for a quick and hassle-free buying process.
4. Max Financial Services
Max Financial Services Limited (MFSL) is the holding company for the Max Group, which is a diversified business group with presence in life insurance, healthcare and specialty films. MFSL is listed on both the Bombay Stock Exchange and National Stock Exchange of India.
The company has a strong investor base that includes some of the world’s leading financial institutions such as KKR, Baron, Ward ferry, New York Life, Vanguard, Blackrock, Jupiter, Norges, Neuberger Burman, Eastspring and Dimension.
Max Life Insurance Company Limited is a joint venture between MFSL and Mitsui Sumitomo Insurance (MSI), a Japan-headquartered global leader in life insurance. Max Life is India’s first listed company focused exclusively on life insurance and MFSL holds a majority stake in the company.
The other entities in the Max Group are Max India Limited, which has a presence in the senior living and healthcare industry, and Max Ventures and Industries Limited. Together, these companies provide a comprehensive bouquet of products and services to cater to the needs of individuals and businesses across various segments.
5. New India Assurance Company Ltd
New India Assurance Company Ltd is India’s largest non-life insurance company with a strong brand identity. The company has been in the news recently for its partnership with the Aditya Birla Health Insurance Company. This move will help New India Assurance to tap into the growing health insurance market in India.
The company has a strong balance sheet with a solvency ratio of 213% and a net retention ratio of 81.4%. Its shares are trading at 87.25 on the BSE, down 1.63%. The total volume of shares traded on the NSE and BSE combined was 250,377 shares. New India Assurance is a good long-term investment option for investors looking to benefit from the growth of the insurance sector in India.
6. ICICI Lombard General Insurance Company Ltd
ICICI Lombard General Insurance Company Ltd (NSE: ICICIGI) hit a 52-week high of 1,675. This is excellent news for shareholders, as the stock has been on a steady upwards trend over the last year. ICICI Lombard is one of the leading private sector general insurance companies in India, with a strong focus on both individuals and businesses.
The company has an impressive track record, with a Gross Written Premium (GWP) of Rs135.92 billion for the year ended March 31, 2020. In addition, the company issued over 26.2 million policies and settled over 1.86 million claims as on March 31, 2020. Given its strong performance and solid growth prospects, ICICIGI is definitely a stock to watch in the coming months.
7. LIC India Ltd
LIC of India is one of the most trusted life insurance providers in the country. It has a wide range of insurance and investment products and its presence today spans urban and rural India across 2048 branches. It is also the oldest life insurer in the country. This can be why nearly 75% of Indians consider the LIC of India trustworthy.
The company has strong financial backing and has successfully paid over 98% of the LIC policy claims filed by nominees. As per IRDAI annual report 2021-22, LIC is a leading life insurer in the country with a market share of 73.3%. It is also one of the largest public sector companies in India with an employee base of over 2 lakhs.
The company thrice has been awarded the ‘Golden Peacock Award for Innovation’ and is also certified ISO 9001:2015 certified. Thus, LIC of India is a reputed and reliable life insurance provider in the country that you can trust for your insurance needs.