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U.K. (FTSE) Insurance Industry Analysis

UpdatedDec 02, 2021
DataAggregated Company Financials
  • 7D0.6%
  • 3M-9.9%
  • 1Y2.6%
  • YTD-1.4%

Over the last 7 days, the Insurance industry has remained flat, although notably Aviva gained 5.9%. In line with that, the industry has also been flat over the past 12 months.

Industry Valuation and Performance

Has the U.K. Insurance Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Sun, 05 Dec 2021UK£94.8bUK£128.5bUK£5.8b13.4x
Tue, 02 Nov 2021UK£103.0bUK£127.3bUK£5.8b13.8x
Thu, 30 Sep 2021UK£101.6bUK£128.0bUK£5.8b15.6x
Sat, 28 Aug 2021UK£104.1bUK£126.8bUK£5.7b16.1x
Sun, 04 Jul 2021UK£97.2bUK£126.8bUK£5.7b16.8x
Wed, 07 Apr 2021UK£104.1bUK£131.5bUK£6.0b16.8x
Sat, 09 Jan 2021UK£94.2bUK£136.6bUK£6.1b13.2x
Fri, 02 Oct 2020UK£78.0bUK£130.1bUK£6.1b11.7x
Mon, 06 Jul 2020UK£79.9bUK£117.1bUK£5.9b10.6x
Thu, 09 Apr 2020UK£72.2bUK£150.1bUK£6.6b10.2x
Wed, 01 Jan 2020UK£100.0bUK£178.4bUK£7.1b12.7x
Sat, 05 Oct 2019UK£96.0bUK£164.2bUK£7.5b13.2x
Tue, 09 Jul 2019UK£104.5bUK£139.2bUK£7.5b14.1x
Mon, 01 Apr 2019UK£100.3bUK£102.0bUK£7.1b14.6x
Thu, 03 Jan 2019UK£86.6bUK£74.3bUK£6.7b16.1x
PE Ratio


Total Market Cap: UK£86.6bTotal Earnings: UK£6.7bTotal Revenue: UK£74.3b0%0%0%3 Year10 Year

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 14.0x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Insurance industry have declined 4.7% per year over the last three years, while revenues for these companies have grown 20% per year. This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the U.K. Insurance industry?

General Insurance5.82%
Property and Casualty Insurance0.39%
Life and Health Insurance-0.59%
Insurance Brokers-3.12%

Industry PE: Investors are most optimistic about the Insurance Brokers industry which is trading above its 3-year average PE ratio of 52.1x. This is likely because analysts are expecting annual earnings growth of 79%, which is higher than its past year's earnings decline of 59% per year. Meanwhile, investors are most pessimistic about the Life and Health Insurance industry, which is trading close to its 3-year average of 12.8x.

Forecasted Growth: Analysts are most optimistic on the Insurance Brokers industry, expecting annual earnings growth of 79% over the next 5 years. This is better than its past earnings decline of 59% per year. Meanwhile, the Property and Casualty Insurance industry is expected to see its earnings decline by 4.2% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

AV. Aviva5.9%+UK£810.9m16.1%PE12.4x
LGEN Legal & General Group1.1%+UK£190.5m9.3%PE8.1x
DLG Direct Line Insurance Group2.0%+UK£68.5m-10.5%PE9.8x
PHNX Phoenix Group Holdings1.0%+UK£64.1m-10.8%PS0.2x
CRE Conduit Holdings6.3%+UK£42.1m-14.6%PS4660x
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