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The Life Insurance industry delivered a healthy ~14% retail APE growth in Aug26, with the private sector clocking ~15% retail APE growth (on a favorable base) while LIC logged ~13% retail APE growth, albeit on a low base. On a 2Y CAGR basis, the industry delivered ~7% retail APE growth, with the private sector growing ~8% whereas LIC reported ~4% growth. YTDFY27, the life insurance industry clocked ~13% retail APE growth, with the private sector growing ~13% while LIC clocked ~15% growth. Group APE for the industry declined ~3% during Aug-26, owing to ~4% growth for the private sector while LIC witnessed a ~9% decline. As a result, APE for the industry grew ~9% during Aug-26, supported by ~13% growth in the private sector whereas LIC saw a muted ~3% growth. Among private listed players, SBI Life remained the fastest-growing player, clocking ~22% retail APE growth in Aug-26 followed by HDFC Life at ~17% and IPRU Life at ~11%. Axis Max Life saw growth moderate to ~10%, likely due to a slowdown in the agency channel. Canara HSBC Life saw a muted ~6% retail APE growth in Aug-26 on a high base. We expect the industry to log 11-12% retail APE growth in FY27E, backed by 13-14% growth in the private sector, while LIC’s retail APE is likely to grow 7-8%.

Life Insurance industry reports healthy growth on a favorable base

The life insurance industry reported ~14% retail APE growth in Aug-26, driven by ~15% growth in the private sector while LIC logged ~13% retail APE growth, albeit on a low base (Aug-25: -5.1% yoy). On 2Y CAGR basis, the industry logged ~7% retail APE growth, with the private sector delivering ~8% growth while LIC reported ~4% growth in retail APE during Aug-26. YTDFY27, the life insurance industry reported ~14% retail APE growth, supported by a healthy ~15% retail APE growth for LIC while the private sector clocked ~13% growth. As a result, LIC’s RWRP market share improved by ~40bps to 29.9%, as of YTDFY27. Group APE for the industry declined ~3% in Aug-26, owing to a ~9% decline in LIC, but offset by ~4% growth in the private sector. Consequently, APE for the industry grew ~9%, with the private sector growing ~13% while LIC reported a muted ~3% growth. YTDFY27, APE for the industry grew ~16%, driven by ~18% growth for the private sector, whereas LIC posted ~13% growth.

SBI Life and HDFC Life shine; Axis Max Life witnesses growth moderation

Among private listed players, SBI Life emerged as the fastest-growing player, clocking a strong ~22% retail APE growth during Aug-26 on a favorable base. HDFC Life clocked a healthy ~17% retail APE growth in Aug-26, likely led by growth pickup in the HDFC Bank channel and on account of a low base effect. ICICI Pru Life clocked ~11% RWRP growth in Aug-26; however, its reported retail APE grew ~25%, likely led by higher share of monthly premium products sold. Axis Max Life saw growth moderation to ~10% in Aug26, likely due to slowdown in the Agency channel. Canara HSBC Life delivered ~6% retail APE growth on a high base. On 2Y CAGR basis, Axis Max Life remained the fastestgrowing player, clocking ~13% retail APE growth, followed by HDFC Life at ~9% and SBI Life at ~8%. YTDFY27, SBI Life was the fastest-growing player, registering ~16% retail APE growth, followed by Axis Max Life at ~15%, ICICI Pru Life at ~12% (RWRP basis), and HDFC Life at ~6%. Canara HSBC Life clocked ~16% growth during YTDFY27. Among other private listed players, Bajaj Life delivered ~9% retail APE growth, while Tata AIA Life registered ~16% retail APE growth.

We expect the 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 in the private sector, while we expect LIC to deliver ~7-8% retail APE growth. Amid the impending commission regulations, life insurance stocks have underperformed over the past few months. We believe current valuations inadequately capture the franchise strengths—brand, distribution, and scale—of life insurance players.

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