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Private life insurers have seen healthy growth in July/ Aug’26 (+13% YoY), supported by a pick-up in ULIP/ NPAR, strong annuity and sustained momentum in protection, albeit at a moderated pace. We expect 2QFY27E margins to improve QoQ with growth in margin-accretive segments (protection and NPAR); however, impact of GST exemption is likely to be a drag. Valuations have seen a significant correction due to regulatory overhang. We reiterate ‘BUY’ on Max FS (TP of INR2,025 at 1.9x FY28E P/EV), as our top pick, backed by a strong proprietary channel. Key monitorables are:

(1) growth trajectory

(2) margin outlook

(3) decision on the proposed commission guidelines

HDFC Life: The company has seen a subdued APE growth of 7% YoY in July/ Aug’26; we build ~8% for Q2. We expect NPAR to see a pick-up as the company passes on the yield curve benefit to customers. Expect healthy uptick in ULIP/ annuity and continued momentum in protection. Growth in banca and broker channel to accelerate in Q2, led by a savings-heavy mix. Despite a rise in the share of NPAR/ annuity, we expect a stable margin profile YoY at 24.2%, factoring a small drag from GST exemption.

IPRU Life: The company has reported 12% YoY APE growth in July/ Aug’26; we expect a similar run-rate in September, implying 11% growth for Q2. Growth to be led by protection and annuity. Partnership distribution remains a key growth driver; expect the agency channel to contribute more. We build a VNB margin of 25% for Q2FY27E, supported by protection and annuity.

SBI Life: The company has reported 15% YoY APE growth in July/ Aug’26, indicating healthy underlying momentum despite normalization expected in group protection volumes. Banca remains a key growth driver with SBI continuing to contribute strongly while agency continues to benefit from investments in branches and agents. We expect 12% APE growth in Q2, with a resilient VNB margin of 26%.

Axis Max Life: The company has seen 13% YoY APE growth in July/ Aug’26, broadly in line with private players; we build 15% for Q2FY27E. ULIP volume continues to be resilient with the launch of SMART GIFT plan. It is seeing strong traction in annuity, while a pickup in NPAR is likely to provide an additional growth lever as protection growth moderates. We build a VNB margin of 24% for Q2FY27E.

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