NEW YORK (TheStreet) -- The whole life insurance industry is due for a "re-rating," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, reasoned on CNBC's "Cramer's Stop Trading" segment.
He elaborated, saying that companies like Prudential Financial (PRU - Get Report) -- which is having a successful investors' day today -- MetLife (MET) and Genworth Financial (GNW) should trade with higher valuations.
This "re-rating" follows Japanese insurer Dai-ichi's purchase of Protective Life (PL) for $70 per share, or roughly $5.7 billion. This takeover is making investors reconsider the valuation for life insurance companies, Cramer concluded.-- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell >>Read More: Instagram Chases the Art of the Perfect Selfie With Newfangled Tools Pandora Trash Talks Apple, Is Google Ready to Back It Up? What Is an Industrial Vending Machine and Why Are Sales on Fire? Marvel Film Woes Cast Shadow Over Disney's Recent Stock Pop