Investors in life insurance stocks will need to be patient, say brokerages

Long-term story remains good and valuations attractive, but near-term overhangs may keep stock prices subdued

The latest IRDA data for February indicates that individual new business in the life insurance segment has seen some growth moderation. The giant PSU, LIC, could be happy, given that it has shown relatively higher growth vis a vis the private insurers. However, the share price corrections could mean that LIC gets a lower valuation at the IPO.

The Annualised Premium Equivalent (APE) dipped to 5 per cent YoY, versus a 2-year CAGR of 11.4 per cent. Private insurers’ growth moderated (on a high base) to 4 per cent YoY (versus 2-Year CAGR of 11 per cent). The PSU insurer’s