Life Insurance Q2 Results Preview - Stable Quarter; New Business Margins To Improve QoQ: DRChoksey

Deven Choksey Research Report

The life insurance sector has already demonstrated a significant increase in new business premiums, with a 22.9% YoY growth in Q1 FY25. This momentum is expected to carry into Q2 FY25E, supported by a low base effect and increasing consumer awareness of insurance products.

For Q2 FY25E, we expect life insurance companies to see a stable growth across the industry. The non-par segment will continue to see a gradual improvement in the mix, accompanied by robust growth in the Annuity and Protection segments, led by the expansion in the product portfolio and geographical footprints.

While ULIPs have seen strong growth over the last few quarters led by optimism in the capital market, life insurance companies are working towards a strategic shift towards a more balanced product mix, with plans to reduce the proportion of ULIPs in favor of non-participating and protection products.

Private insurers are expected to enhance their market share in both segments- annuity and non-par segments, leveraging technology and improved distribution channels to reach a wider audience.

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