FDU-INS Insurance — Emerging Markets Value Strategy
Method: P/B + Combined Ratio + Market Penetration Analysis
Key Metrics & Adjustments
| Metric | Target | EM Consideration |
|---|---|---|
| P/B Ratio | 0.5-1.0x | 30-50% lower than developed markets |
| Combined Ratio | <95% | Higher acceptable ratio; growing market, margin compression normal |
| Premium Growth | 15%+ YoY | Penetration of underinsured population |
| Expense Ratio | <35% | Higher than developed (still building distribution) |
| Regulatory Capital | Solvency II equivalent | Varies by country; India: IRDAI requirements |
China vs India
- China: Highly competitive market, consolidation underway, margin pressure; P/B 0.6-0.9x
- India: Insurance penetration still low (~3% of population); growth 15-20% YoY; P/B 0.8-1.2x reasonable