Asset Turnover Ratio in Insurance
How to interpret and apply asset turnover ratio when analyzing insurance stocks in US (NYSE/Nasdaq) markets, with reference to international markets like India.
Quick Recap: What is Asset Turnover Ratio?
Asset turnover measures how efficiently a company uses its assets to generate revenue, higher turnover means more productive asset use.
Asset Turnover = Revenue ÷ Total Assets
How Asset Turnover Ratio Works Differently in Insurance
Embedded value based valuation (not traditional P/E), long-duration liabilities, investment income dependent.
Typical Ranges for Insurance
Typical Asset Turnover0.10-0.25x
General benchmark: IT/Services: 1.0-2.0, Retail: 1.5-3.0, Manufacturing: 0.5-1.5
Sector data last reviewed: 2026-04
Example Insurance Companies to Analyze
US Market (NYSE / Nasdaq)
Indian Market (NSE / BSE)
Filter insurance stocks by asset turnover ratio and other metrics:
Key Takeaways
- Asset Turnover Ratio in insurance should be compared against sector peers in the same market (US S&P 500 / Russell or Indian NSE / BSE), not the broad market average.
- Sector characteristics: Embedded value based valuation (not traditional P/E), long-duration liabilities, investment income dependent.
- Cross-list peers across markets, large-cap US names often set the global benchmark, while Indian peers can trade at different multiples due to growth and liquidity differences.
- Always cross-check with other metrics. No single ratio tells the full story.