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.