Equity investment in general insurance sector is attractive from a portfolio perspective given massive under penetration in India, global financial services firm Investec said.

General insurance companies’ diversified product mixes are profit drivers, and the market structure is in favour of top private players, it added.

It feels ICICI Lombard General Insurance Company & Bajaj Finserv are well ahead of the pack with return on equity more than 20 percent, but public sector undertakings are in bad shape with only New India Assurance (NIA) standing apart.

Investec has initiated coverage on ICICI Lombard with buy & New India Assurance with hold.

The brokerage set a price target at Rs 1,000 for ICICI Lombard, Bajaj Finserv at Rs 7,835 and New India Assurance at Rs 170 apiece.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.