Here’s a great article from Market Blog examining the often overlooked value of buying stock in life insurance companies.
Here’s an excerpt:
“Michael Goldberg, an analyst at Desjardins Securities, asked an intriguing question in a research note on Thursday: With so much focus on banks, is the opportunity in life insurance companies being overlooked?
His answer is yes. While bank valuations are compelling, he expects their earnings will fall 12 per cent in fiscal 2008, while life insurance companies should see their earnings rise 3 per cent. The divergence will continue into 2009, when banks should be able to grow their earnings by 10 per cent but life insurance companies will be able to grow earnings at twice the pace, 20 per cent.” Read More Here