Why must you invest in insurance companies' stock?
Dear investors They are Gems of Indian stock market. What should an investor look at while picking the best insurance stocks to buy? There are not many listed players in the insurance space and in challenging times it is better to stick to the leaders which have the highest solvency ratios, strong Banca partners, a wide distribution network, and a diverse product mix. Annual Premium Equivalent or Gross Written Premiums Profit and Loss statement of an insurance company is extremely different than any other industry. Here the revenue is in the form of APE or GNP. Annual premium equivalent (APE) which forms the topline in life insurance players is a key parameter to observe. In simple terms, APE forms the premiums received by the companies from its various products. It usually measures the volume of new business premiums written in the course of the year. An investor should look for consistent improvement in APE growth. NBP is the term used for new business premium which s