One needs to go in for a constructive session for life insurance sector. There is a low expectation combined with improvement in equity and credit markets which would prove to be a winning combination for performance across the group.
The third quarter macros continue to demonstrate for the positive trend in conditions which would provide a considerable improvement in the current valuations. With the life index trading at nearly 1.10times the third quarter profits the international accounting standards revealed a profit of 8.5 times earnings per share which made us think about the risk/reward systems in the group.
To maintain such a bullish view from the current levels would necessitate a willingness to take a longer term view with possibility for continued improvement in valuations which would make one approach the averages.
We would think that likelihood of meaningful accretive acquisition is far lower than today which would consider that improvement in capital and credit market will be largely removed from “fire sales” from the market. Many say that math behind earning of improvements would lead us to 12% return on equity which is reasonably good.
As a result of this MetLife’s sizeable option would do stock as far as defensive peers may be concerned which would find one a reason as to how one should make oneself insured.
To maintain such a bullish view from the current levels would necessitate a willingness to take a longer term view with possibility for continued improvement in valuations which would make one approach the averages.
We would think that likelihood of meaningful accretive acquisition is far lower than today which would consider that improvement in capital and credit market will be largely removed from “fire sales” from the market. Many say that math behind earning of improvements would lead us to 12% return on equity which is reasonably good.
As a result of this MetLife’s sizeable option would do stock as far as defensive peers may be concerned which would find one a reason as to how one should make oneself insured.
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