Best Insurance Stocks in India 2024

Investing in the Indian equity segment is one of the many ways to create wealth in the long run. However, not all stocks perform the same. This is precisely why it is important to choose the right kind of stocks for your portfolio. 

If you’re unsure of which stock to include in your investment portfolio, the Indian insurance sector could be a good place to start. The country’s insurance industry is fast growing and features some fundamentally strong companies with an excellent track record of revenue and profitability. 

In this article, we’re going to look at some of the best insurance stocks in India that you can consider adding to your investment portfolio. But before that, here is a brief overview of the insurance industry in India. 

An Overview of the Indian Insurance Industry 

The foundation for the Indian insurance industry was laid in 1818 with the establishment of the Oriental Life Insurance Company. In the two centuries since the first-ever insurance company in India was incorporated, the insurance industry has grown by leaps and bounds. 

At the forefront of the growth and development of the industry is the Insurance Regulatory and Development Authority of India (IRDAI). It is the regulatory body responsible for framing laws, rules and regulations for the effective functioning of the insurance industry in the country. 

After the COVID-19 pandemic, the number of individuals opting for insurance products has increased significantly. However, despite the recent surge in insurance purchases, insurance penetration in the country is still very low compared to other more developed nations. This signifies greater room for growth in the future, making investing in insurance stocks in India an attractive long-term proposition. 

List of the Best Insurance Stocks in India 

Here are some of the top insurance stocks in India across the life insurance, health insurance and general insurance segments that you can consider adding to your portfolio along with their key financial metrics. 

1. Life Insurance Corporation Of India

Formally established in 1956, the Life Insurance Corporation (LIC) of India is the largest life insurance company in the country in terms of Assets Under Management (AUM). The Government of India is the largest stakeholder in the company. 

As of 31st March 2023, the total number of lives covered by various life insurance products of the LIC stood at more than 27 crore. The total AUM of the company as of the same date was Rs. 45,50,571 crore. 

Key Financial Metrics 

• Market Capitalisation - Rs. 5,80,000 crore (approximately)
• PE Ratio for the Trailing Twelve Months - 14.38
• PB Ratio - 9.10
• Dividend Yield - 0.76
• 52-Week High - Rs. 1,175
• 52-Week Low - Rs. 530.05
• Earnings Per Share (EPS) for the Trailing Twelve Months - Rs. 63.76
• Return on Equity (ROE) - 77.86

2. HDFC Life Insurance Company Limited

Incorporated in the year 2000, HDFC Life Insurance Company Limited is one of the best insurance stocks from the private sector. The company’s insurance products are classified into three major verticals - term insurance, investment plans and life insurance plans. Additionally, HDFC Life Insurance Company has recently started offering group insurance and health insurance plans as well. The total AUM of the company as of 7th June 2023 stood at more than Rs. 2,50,000 crore. 

Key Financial Metrics 

• Market Capitalisation - Rs. 1,36,000 crore (approximately)
• PE Ratio for the Trailing Twelve Months - 89.20
• PB Ratio - 9.50
• Dividend Yield - 0.30
• 52-Week High - Rs. 710.60
• 52-Week Low - Rs. 486.70
• Earnings Per Share (EPS) for the Trailing Twelve Months - Rs. 7.09
• Return on Equity (ROE) - 10.53

3. ICICI Lombard General Insurance Company Limited

Founded in 2001, the ICICI Lombard General Insurance Company Limited is among the best insurance stocks in India. The company is focused on providing an extensive range of non-health general insurance products such as motor vehicle insurance, health insurance, travel insurance and business insurance. 

Furthermore, ICICI Lombard GIC also offers niche insurance products like crop insurance, NRI insurance and cyber insurance, among others. As of 31st March 2023, the company had issued over 32.7 million policies across different segments and settled about 3.6 million claims. 

Key Financial Metrics 

• Market Capitalisation - Rs. 82,910 crore (approximately)
• PE Ratio for the Trailing Twelve Months - 45.16
• PB Ratio - 7.00
• Dividend Yield - 0.62 
• 52-Week High - Rs. 1,734.90
• 52-Week Low - Rs. 1,055
• Earnings Per Share (EPS) for the Trailing Twelve Months - Rs. 37.27
• Return on Equity (ROE) - 16.55

4. General Insurance Corporation of India

Established in 1972, the General Insurance Corporation (GIC) of India is another public-sector insurance company in the country. However, unlike the LIC, the company is in the reinsurance business offering tailored solutions to domestic and international businesses. 

The insurance products of GIC cater to sectors such as property, engineering, marine, aviation, liability, automotive and agriculture. As of 31st March 2023, the company’s total assets stood at Rs. 1,57,125 lakh and its net worth was Rs. 63,750 lakh.

Key Financial Metrics 

• Market Capitalisation - Rs. 57,830 crore (approximately)
• PE Ratio for the Trailing Twelve Months - 8.46
• PB Ratio - 1.22
• Dividend Yield - 2.18
• 52-Week High - Rs. 467.80
• 52-Week Low - Rs. 127.80
• Earnings Per Share (EPS) for the Trailing Twelve Months - Rs. 38.96
• Return on Equity (ROE) - 15.28

5. Star Health and Allied Insurance Company Limited 

One of the best health insurance stocks in India, the Star Health and Allied Insurance Company Limited was established in 2006. The company offers an extensive range of health insurance and accident insurance plans for individuals, families and senior citizens. Additionally, it has also begun offering travel insurance plans for students and regular individuals and a host of corporate-focused insurance plans. 

Key Financial Metrics 

• Market Capitalisation - Rs. 31,850 crore (approximately)
• PE Ratio for the Trailing Twelve Months - 39.58
• PB Ratio - 4.81
• Dividend Yield - 0.00%
• 52-Week High - Rs. 675
• 52-Week Low - Rs. 454.80
• Earnings Per Share (EPS) for the Trailing Twelve Months - Rs. 13.75
• Return on Equity (ROE) - 11.36

Note: All of the key financial metrics of the five best insurance stocks in India mentioned above are as of 28th March 2024. 

Conclusion

The Indian insurance sector offers a wide range of attractive long-term investment options. That said, before you invest in any of the insurance stocks in India, remember to conduct your own research. This will help you determine whether the stocks are fit for your portfolio and investment goals or not. 

The Research 360 platform of Motilal Oswal can identify the right stocks for you. The ‘Stock Screeners’ feature of the platform lets you quickly filter various stocks based on predefined criteria. Additionally, you can also use the ‘Stock Overview’ feature of Research 360 to gain insights into the various aspects of your preferred stock including detailed research reports.