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Below are Post budget comment on insurance sector from Prayesh Jain, Lead Analyst - Institutional Equities at Yes Securities

“The move to increase FDI in insurance from 49% to 74% bodes well for the companies who have been facing capacity constraints owing to lack of capital. This move will help the companies raise fresh capital and enhance growth prospects. None of the large players face any capital stress. Overall, this will lead to increase in competition from smaller players. The move to remove exemption for ULIP plans where premium is greater than Rs2.5 lakhs per annum could impact flows in the segment where ICICI Pru and SBI Life have the highest share.”

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