Life Insurance Sector Update : Jun-26 New Business - Steady Retail APE growth by Emkay Global Financial Services Ltd
The life insurance industry clocked healthy ~16% yoy Retail APE growth in Jun26, led by ~14% growth for the private sector, while LIC clocked strong 21% retail APE growth, albeit on a low base (Jun-25: +2.1% YoY). On a 2Y CAGR basis, the industry reported ~13% Retail APE growth, with the private sector growing ~13% and LIC growing ~11%. During 1QFY27, the private sector reported ~15% yoy growth in Retail APE, whereas LIC posted ~19% Retail APE growth, leading to ~16% retail APE growth for the industry. While the protection segment saw continued growth momentum, aided by the GST rate exemption, the savings business was hit by uncertainties due to geopolitical tensions stemming from the Middle East conflict and the overall macroeconomic situation. Group APE for the industry grew at a strong 56% yoy in Jun-26, led by robust 92% growth for the private sector, while LIC logged 31% growth. As a result, total APE for the industry grew at a strong ~28% yoy, driven by strong 29% growth for the private sector, while LIC reported ~26% APE growth. Among private listed players, SBI Life remained the top performer in Jun-26, clocking a strong ~18% yoy Retail APE growth, followed by Axis Max Life (+15%), ICICI Pru Life (reported Retail APE: +9.6%), and HDFC Life (-0.4%). Canara HSBC Life clocked robust ~28% yoy Retail APE growth on a strong base. We expect the industry to log 11-12% Retail APE growth in FY27, backed by 13- 14% growth in the private sector, while LIC’s Retail APE is likely to grow 6-7%.
Healthy Retail APE, robust Group APE growth drive strong APE growth in June
The life insurance industry reported a healthy ~16% yoy Retail APE growth in Jun-26, supported by a strong ~21% retail APE growth by LIC (albeit on a favorable base; Jun25: +2.1% YoY) and the private sector growing ~14%. On a 2Y CAGR basis, the private sector clocked ~13% retail APE growth, while LIC reported ~11% Retail APE growth, driving 12.6% retail APE growth for the industry. Group APE for the industry grew at a strong 56% yoy in Jun-26, driven by robust 92% growth for the private sector, while LIC clocked ~31% growth. This was led by strong growth in the Group OYRGTA business. As a result, total APE for the industry grew ~28% yoy in Jun-26, with the private sector growing 29% and LIC growing ~26%. For 1QFY27, the industry’s Retail APE grew ~16% yoy, supported by ~19% growth for LIC, while the private sector grew ~15%. Consequently, LIC’s 1QFY27 RWRP market share increased by 70bps yoy to 31.5%
SBI Life remains top performer; divergent trends across private listed players
Among private listed players, SBI Life remained the top performer in Jun-26, clocking strong ~18% yoy Retail APE growth, followed by Axis Max Life at ~15%. The healthy performance of SBI Life and Max Life comes on a strong base. ICICI Pru Life clocked ~13% yoy RWRP growth, while its Retail APE grew at a modest 9.6% in Jun-26. HDFC Life saw muted performance in Jun-26, reporting a 0.4% decline in Retail APE, owing to the slowdown in the HDFC Bank channel. Canara HSBC Life clocked robust ~28% yoy retail APE growth on a strong base. On a 2Y CAGR basis, Axis Max Life topped the charts, clocking strong 18% retail APE growth, followed by SBI Life (+15.9%) and HDFC Life (+5.6%). ICICI Pru Life’s reported Retail APE on a 2Y CAGR basis was largely flat in Jun26. For 1QFY27, Axis Max Life remained the fastest growing player, clocking healthy ~17% yoy Retail APE growth, followed by SBI Life at ~15%. ICICI Pru Life clocked modest ~9% reported Retail APE growth in 1QFY27. HDFC Life’s reported Retail APE grew 7.5% yoy in 1QFY27.
We expect industry’s Retail APE to grow 11-12% in FY27
We expect the industry to report ~11-12% Retail APE growth in FY27, supported by ~13- 14% growth for the private sector, while we expect LIC to deliver ~6-7% Retail APE growth. Over recent months, the life insurance stocks have witnessed a sharp correction amid regulatory overhangs. Current valuations do not adequately reflect the strong franchise strengths, supported by brand, distribution, and scale, thus providing an attractive entry point. We prefer SBILIFE and MAXF.
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