Life Insurance Q4 Preview— Seasonal Tailwind, Product Mix To Drive Growth: DRChoksey; HDFC Life Among Top Pick

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.

DRChoksey Report

The life insurance sector remains structurally well-positioned, supported by a clear shift in customer preference toward protection-oriented and guaranteed return savings products. These segments are gaining traction as households seek financial security and income certainty, particularly in a volatile macro environment.

As the industry continues to focus on high-margin protection and annuity products, and leverages evolving regulatory support, we believe the life insurance sector is well placed to deliver sustainable long-term growth, while addressing India’s wide protection gap.

In FY26E, value of new business growth is expected to broadly track APE expansion, with a strategic shift toward high-margin segments such as protection and annuity products.

Among key players under our coverage:

SBI Life is aiming to sustain VNB margins in the 27.0–29.0% range in FY26E, supported by favorable reinsurance pricing and ongoing product innovation.

HDFC Life is well-positioned to stabilize or expand margins, driven by improving persistency, higher ULIP attachment rates, and operating leverage.

ICICI Prudential Life is targeting mid-teen VNB growth, although near-term margin performance may be impacted by its evolving product mix.

From a valuation standpoint, the sector continues to trade at a discount to historical levels. For FY27E, the average P/EV multiple for our coverage universe stands at 1.5x, well below the five-year historical average of 3.3x, offering favorable risk-reward for long-term investors.

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.