A large opportunity but only for long term investors: 6 insurance stocks with potential upside of up to 17%

A large opportunity but only for long term investors: 6 insurance stocks with potential upside of up to 17%
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Synopsis

While it should be done for every sector, for some sectors it is extremely important to make a distinction between the narrative which is making rounds on the street and what is happening in the real business. The reason, it is a narrative which is going on the street which makes expectations high and when they are not met then investors end up making the wrong decision both at the time of buying and selling. First, a large market size does not mean that players will see all the growth in the short term, it might be a long term play when it comes to overall growth of the markets. So, while insurance is a big opportunity, it will pan out over a period of time. Second, a number of times, the name of both life and non- life and health insurance companies is taken in the same breadth. But they are very different in every aspect and the stock price movement will also follow a different trajectory. So does the current phase of consolidation and underperformance of the stocks is an opportunity for investors looking for a real long term investment opportunity?

When close to two decades back, private insurance companies started gaining prominence, there were two issues which got highlighted. First one was about the vast opportunity these companies will have to tap into. Second was a voice of concern, about the capital and expertise and the patience to run an insurance company. If one looks at the situation today, probably both have come true. The only thing is that there have been phases where clearly

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