HSBC Global Hikes Target Price For India Life Insurance, JPMorgan Remains Mixed

HSBC Global Research hiked price targets for Indian life insurance firms amid the improving attractiveness of non-linked products. On the other hand, JPMorgan remains mixed about the sector owing to slower margin recovery and, at the same time, strong annualised premium equivalent growth in May 2025, according to their reports.

JPMorgan also noted a primarily unit-linked insurance plan-driven growth and projects the APE growth to remain strong, carried by ULIPs and the increased attractiveness of long-term guaranteed savings products in an environment of anticipated interest rate cuts. While HSBC remained entirely positive on the sector on account of an improving margin outlook, stating that "easing competition and an increase in rider attachment rates should also support margin expansion, in our view."

HSBC declared that its top pick among all the firms is HDFC Life owing to scope for multiple expansion due to margin tailwinds, low downside risks to earnings, and supportive valuations and hiked its target price from Rs 830 to Rs 870. The firm also remarked that "HDFCLIFE looks best placed due to its low exposure to linked products". JPMorgan too had a positive outlook for HDFC Life, as the research firm expects it to "see near-term tactical stock price outperformance."

JPMorgan noted a weak individual APE growth of 4% on an annual basis; however, it does not expect a downward revision "as a better margin print could lead to value of new business (VNB) beat." The research firm expects the stock to trade sideways till quarter 1 results for fiscal 2026 are released by the company in mid-July.

For SBI Life, HSBC Global maintained a 'buy' rating but at the same time noted that SBI Life could be the most affected if the sales of linked products slow down materially. It revised SBI Life's target price to Rs 1950 from Rs 1800.

IPRU Life got a bullish stance from JPMorgan after noting the company's weaker individual segment growth due to a high base last year. The research firm forecasts possible "near-term weakness following the print".

However, HSBC maintained its 'buy' rating for the company and hiked its TP to Rs 720 from Rs 675.

JPMorgan observed a steady recovery in the individual segment as APE decline narrowed, and HSBC Global holds a positive outlook for LIC.