Among key players under the brokerage's 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.
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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.
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