Market cap of top insurers climbs in Q4, first three months in ‘choppy’ waters | Asian Business Review
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Market cap of top insurers climbs in Q4, first three months in ‘choppy’ waters

Demand for life and cyber coverage, China's reopening, and the adoption of insurtech could drive the industry forward. 

In the fourth quarter of 2023, the top 25 global insurers saw their market capitalisation grow by 2.7% to $2.79t, driven by heightened risk awareness and a focus on financial security, GlobalData reported.

“The resilient demand for protection driven by risk awareness, rising property values, and strong segments like life and cyber insurance, coupled with strategic price adjustments and geographic diversification, allowed the global insurance industry to navigate the challenges and post a positive Q4 2023 performance,” Murthy Grandhi, company profiles analyst at GlobalData commented in a release.

ALSO READ: Hong Kong’s top 50 insurers experience 7.7% YoY premium contraction in 2022

Table from GlobalData

Life Insurance Corporation (LIC) experienced a significant 27.9% increase in market value, largely due to its popular Jeevan Utsav product and a strong nodal agency network. Allstate Corp reported a 9.8% rise in year-over-year revenue to $14.5b and a notable increase in its cash balance.

However, China Life Insurance's market value dropped by 19.3%, with profits declining by 36% in the first nine months of 2023, impacted by stock market downturns and lower bond yields. The company also faced challenges from new accounting standards and a complex market environment, although it maintained growth.

Ping An Insurance Group's value fell by 16.7% amid rumours of its acquisition of Country Garden Holdings, leading to a significant sell-off. Overall, the insurance sector navigated through a mix of growth and challenges in a fluctuating market and economic conditions.

For Q1 2024, GlobalData foresees the global insurance industry could be choppy with a potential global slowdown and volatile reinsurance costs. 

ALSO READ: Singapore’s top 50 insurers see 3.7% YoY asset decline in 2022

Grandhi warns the first three months of the year could see mixed outcomes, influenced by a possible economic slowdown all over the world coupled with tense reinsurance costs.

“Continued demand for life and cyber coverage, China's reopening, and the adoption of InsurTech could push the industry forward. However, natural disasters, regulatory waves, and the ongoing Red Sea crisis may present unpredictable headwinds. Insurers who adapt, diversify, and manage risks are best positioned to ride the tide towards potential growth in this uncertain quarter.” Grandhi concluded.

 

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