Life Insurance - Healthy Growth For Private Peers In Q3; Margins To Be Range-Bound: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

Individual annual premium equivalent trend for private life insurers was lukewarm (+11% YoY); SBI Life Insurance Company Ltd. saw a decent pick-up (+16% YoY despite a high base) on strong banca volumes. Industry grew 5% due to weak performance of LIC (-13% YoY).

Group APE saw a de-growth of 45% YoY mainly due to a decline in growth for LIC (-56% YoY).

Q3 performance: Among our coverage, ICICI Prudential Life Insurance and Max Life have seen sustained momentum driven by growth across Protection, Annuity and NPAR businesses. Expect Q3 FY25 value of new business margins to be be range-bound due to the impact of the new surrender value guidelines.

Reiterate Buy on ICICI Life (target price of Rs 850 at 2.2x FY26E P/EV) and Max Life (target price of Rs 1,375 at two times FY26E P/EV). Revise target price of SBI Life to Rs 1,700 (2.1x FY26E P/EV); however maintain Hold.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.