Improvement in profitability to continue for life insurers, say analysts

Low penetration and increasing awareness to propel sale of more profitable protection products

The stocks of most life insurers have been under pressure in the last couple of months amid factors such as high valuations, some company-specific concerns, among others (see chart).

Though minor issues may still weigh on their financial and share price performance, with an expected pick-up in profitability, their earnings prospects look better, say analysts.

Although the higher base of the last two years means growth in the annual premium equivalent may not be very high, financialisation of savings offer long-term opportunity. Moreover, companies’ initiatives will also play a crucial role in driving growth and profitability.

“Growth concerns are behind