Life insurers' stock values appear to be more attractive than those of regional banks, a life insurance analyst says.
Andrew Kligerman, an analyst for UBS Investment Research, New York, pegs the price-to-tangible book value (P/TBV) for life insurers at 1, compared to a P/TBV of 1.5 for banks.
The numbers mean the analyst believes insurers' stock prices are about right, while banks may currently be a bit overpriced.
"We think that life insurers will outperform regional banks over the near term–a conclusion two-thirds of respondents to our investor survey also reached," Kligerman said.
