Life Insurance - Growth Momentum Continues In July; H1 Outlook Strong: Nirmal Bang

Nirmal Bang Report

Individual annual premium equivalent trend for private life insurers was better than industry in July 2024 (plus 30% YoY versus 19% for industry). All covered companies continued to demonstrate strong momentum.

Industry’s Group APE grew by 33% YoY, with HDFC Life Insurance Company Ltd./ICICI Prudential Life Insurance Comp Ltd. seeing growth of 31%/23% YoY. SBI Life Insurance Company Ltd. saw a sharp decline of 67% YoY due to weak volume in the Group Protection business.

On YTD’25 Individual APE basis, SBI Life remains the market leader with 15.7% share; HDFC Life/ICICI Life/Max Life market share stands at 11.3%/7.2%/6.1%.

We expect growth in H1 FY25 to be driven by steady volume in Retail Protection, Annuity and Non-participating Reiterate 'Buy' on SBI Life (target price of Rs 1,890, 2.3 times FY26E price/enterprise value) and ICICI Pru Life (target price of Rs 750, 2 times FY26E price/embedded value value).

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