I have been analyzing insurance business for some time now.
I am not able to understand low ROE and ROCE for HDFC Life.
Is it due to stagnant PAT in the past few years? I can see that PAT is almost stagnated. Past 5 Year PAT growth is only 4%. This seems to have reduced ROE from 15% to 9%.
Is this a good or bad sign for the Business?
I have been holding this stock due to its high market share, but my confidence is low due to poor PAT and ROE. SBI Life has higher ROE than this.
It would help me to understand if I am missing any thing.