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 Prudential Financial, Inc. Report -- which is having a successful investors' day today -- MetLife (MET) - Get MetLife, Inc. Report and Genworth Financial (GNW) - Get Genworth Financial, Inc. Class A Report should trade with higher valuations.
And while The Travelers Companies (TRV) - Get Travelers Companies, Inc. Report is simply too big to be taken over and is not a life insurance provider, it runs a "fantastic" business and is a "remarkable insurer," he said.
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.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.