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New business premium growth for the life insurance industry in Q2FY27 is expected to remain healthy at ~17-18% YoY. The key segments driving this growth are protection, non-par savings, and annuity. Sequentially, business momentum is poised to pick up across lines, rebounding from a seasonally subdued Q1. Within our coverage universe, LICI (21% YoY), HDFCLIFE (15% YoY), and IPRULIFE (15% YoY) are expected to report the strongest NBP growth in Q2FY27. On the APE front, CANHLIFE (12% YoY), LICI (10% YoY), and SBILIFE (9% YoY) are expected to lead in terms of growth. YoY changes in VNB margins for the quarter are expected to be largely positive, ranging from −90bps (SBILIFE) to +367bps (LICI). We also conducted a pricing study for two products: (a) a pure-term plan and (b) a non-par guaranteed savings plan. The key findings are that CANHLIFE has increased premium pricing for its pure-term plan and increased the XIRR on its non-par guaranteed savings product. ABSLI has decreased premium pricing for its pure-term plan while the XIRR on its non-par guaranteed savings product remains unchanged. In terms of non-par guaranteed savings plans, TATA AIA observed moderate decline in its XIRR as compared to last quarter. We have moved SBILIFE up in the pecking order and now it is our top pick in the life insurance space.

NBP growth remains healthy: Following the seasonally weak business momentum in Q1FY27, insurers are expected to witness sequential growth in premium collections during Q2FY27. The YoY growth too also remains healthy across the sector. Industry NBP grew 33% YoY in Aug 2026 and 21% YoY in July 2026. Private players’ total NBP grew 20% YoY in Aug and 16% YoY in July. LIC’s YoY growth stood at 45% in Aug and 24% in July, outpacing overall industry NBP growth. Within our coverage universe, LICI is expected to deliver the strongest NBP growth in Q2FY27 at 21% YoY, followed by HDFCLIFE at 15% YoY and IPRULIFE at 15% YoY. CANHLIFE is expected to report 12% YoY growth, while MAXF is likely to post relatively moderate growth of 8% YoY. SBILIFE is expected to report NBP growth of 2% YoY.

APE growth higher sequentially: APE growth is expected to remain healthy across most insurers, supported by steady individual business traction and continued channel expansion. Industry total APE grew 16% YoY in Aug 2026 (Private total grew 15.6% YoY), with LIC being in-line with the industry at 16% YoY. In July 2026, industry APE growth was lower at 13% YoY (Private total grew 10% YoY), while LIC recorded a much higher 17% YoY growth. CANHLIFE is expected to lead with 12% YoY APE growth, followed by LICI at 10% YoY and SBILIFE at 9% YoY. IPRU and HDFCLIFE are likely to report APE growth of 8% and 8% YoY, respectively, while MAXF is expected to register 7% YoY growth.

VNB margins movement on YoY basis remain largely positive: For Q2FY27, YoY VNB margin outcomes are expected to be mixed, driven by company-specific factors. On a YoY basis, VNB margins are likely to decline for SBILIFE (-90 bps). We expect a meaningful improvement for LIC (+367 bps), followed by CANHLIFE (+226 bps) and IPRU (+206 bps) YoY. We are expecting growth for HDFCLIFE (+93 bps), followed by MAXF (+1 bps). LIC is expected to report the strongest VNB growth in Q2FY27 at 31% YoY, followed by CANHLIFE at 25%, IPRU at 18%, and HDFCLIFE at 13%. SBILIFE and MAXF are expected to lag among peers, with 5% and 7% YoY growth, respectively.

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