Life Insurance Q4 Results Preview - Expect To See A Mixed Trend; Margins To Remain Tepid: Nirmal Bang

Nirmal Bang Report

While the overall industry growth has tracked well in January 2024/Feb-24, led by growth in protection and unit linked insurance plan volume, we expect March 2024 to see the full impact of the decline in high-ticket non-participating.

We expect Q4 FY24 value of new business margins to be subdued due to higher ULIP focus, low NPAR volume and increased investments in growth.

With the removal of a major regulatory overhang for the sector, we maintain our positive stance and prefer SBI Life Insurance Company Ltd. and ICICI Prudential Life Insurance Company Ltd. Valuations remain conducive to growth.

In our view, the key monitorables from Q4 FY24 results are:

1. Growth guidance for FY25/FY26,

2. Recovery in NPAR sales and

3. FY25 VNB margin outlook.

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