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Highlights
- The insurance sector in the UK has come a long way primarily due to significant transformation and progress in the industry.
- As per industry experts, the insurance sector in the country is expected to show growth in 2022, driven by favourable pricing dynamics.
The UK insurance sector has come a long way primarily due to significant transformation and progress in the industry. For many years the insurance sector in the country has been dominated by prominent big companies like Prudential Plc, Direct line insurance Group Plc, Legal & General Group Plc. However, new-age startups and small companies are using innovative strategies to thrive in the market. As per industry experts, the insurance sector in the country is expected to grow further, led by positive pricing dynamics.
Let us explore three FTSE listed insurance stocks and their investment prospects:
Prudential Plc (LON: PRU)
FTSE100 listed company offers life and health insurance to its customers in different countries. Apart from insurance, the company offers savings products for retirement, mutual fund, and asset management services.
The company’s stock got listed on the Hong Kong Stock Exchange in October 2021. The company raised USD 2.4 billion via an oversubscribed international placing. It plans to use the net proceeds from the listing to invest in new growth opportunities in Asian and African markets. During the first half of 2021, the company reported total revenue of USD 11,692 million and an interim dividend of 3.89p per share.
Prudential Plc currently trades at GBX 1,287.50, up by 0.51% on 06 December 2021 at 10:40 am GMT+1, with a market cap of £35,181 million.
Legal & General Group Plc (LON: LGEN)
The company operates in the life insurance segment offering various savings and insurance products like annuity contracts, index and fixed-income funds, and protection products to its customers.
The company reported a robust performance in the first half of 2021. The group reported a 14% rise in operating profit at £1,079 million, while its earnings per share was at 17.78p per share. All the five-business divisions of the company contributed to the revenue and profit. Over the next five years, the company plans to generate cash and capital that exceeds the dividend payout and faster growth in earnings per share.
Legal & General Group Plc currently trades at GBX 287.30, up by 0.49% on 06 December 2021 at 10:40 am GMT+1, with a market cap of £17,069 million.
3 FTSE insurance stocks to buy for a long term
Direct line insurance Group Plc (LON: DLG)
The company provides general insurance products like motor, pet and home insurances to its customers. It sells insurance products through an online comparison website, partners, as well as brokers.
The motor insurance segment contributes close to 50% in gross written premium to the company’s overall revenue. In the first nine months of 2021, the company reported a total gross premium of £2413.6 million, of which the motor insurance segment contributed £1,196 million, while the rest of the revenue came from the home, rescue, and commercial insurance segments.
The company has kept its medium-term outlook unchanged and expects an operating ratio in the range of 93% to 95%.
Direct line insurance Group Plc currently trades at GBX 270.60, up by 0.48% on 06 December 2021 at 10:40 am GMT+1, with a market cap of £3,583 million.
