Religare Broking positive on life insurance sector, recommends four stocks

New Delhi [India], April 5 : Advisory firm Religare Broking is positive on four insurance compes - LIC, SBI Life, HDFC Life, and ICICI Prudential - and it recommended that investors buy these stocks.

It sees a 13-22 per cent return on investments in these compes.

The brokerage said it is positive on the life insurance sector as it is poised for growth due to favourable factors like rising GDP growth, increasing financial literacy amongst individuals, growth in group insurance, and focus on financial inclusion.

Government schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana, and Pradhan Mantri Suraksha Bima Yojana would also give a push to the sector and help in the penetration of insurance in rural areas, it said in a report.

Life insurance in India still remains underpenetrated with the total amount of sum assured is 23 per cent of GDP while only 12 per cent of the addressable population remains insured, it said.

"The under penetration presents an opportunity as the overall industry is in the nascent stage in India and has grown consistently over the years," it said in the report.