The Australian share market is home to a number of insurance shares for investors to choose from.
These include the likes of Suncorp Group Ltd (ASX: SUN, QBE Insurance Group Ltd (ASX: QBE), Insurance Australia Group Ltd (ASX: IAG), Freedom Insurance Group Ltd (ASX: FIG), and even Kogan.com Ltd (ASX: KGN) following its decision to launch health and pet insurance offerings next year.
Which one should you invest in?
I think that investors looking to gain exposure to the industry ought to consider Suncorp. At the current share price I believe it offers investors both value and income.
Its shares currently change hands at 17x trailing earnings and provide a trailing fully franked 5.2% dividend.
I think this is quite attractive given the early success of its One Suncorp strategy.
In FY 2017 the strategy helped the company achieve a 4% increase in gross written premiums, an improved return on equity, and ultimately a 12% lift in sales.
Furthermore, it appears to have had a positive impact on its banking business. The company's most recent quarterly update revealed a 2.4% lift in gross loans.
Pleasingly, this was achieved while maintaining its commitment to responsible and sustainable lending practices.
Is now a good time to buy?
Considering its share price and dividend yield, I think now could be a good time to invest in its shares.
However, its half-year results are due to be released in around six weeks. So investors may want to hold out for its next update to see if its business is still performing strongly.
