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Life Insurance saw a slowdown in growth momentum, with the industry reporting modest ~9% yoy retail APE growth in Jul-26. The private sector logged ~8% yoy growth, while LIC delivered ~10% growth, albeit on a low base. On a 2Y CAGR basis, the industry delivered ~9% retail APE growth, with the private sector growing at ~11% while LIC reported ~5% growth. During YTDFY27, retail APE for the industry grew ~14%, led by LIC clocking healthy ~16% yoy growth, while the private sector delivered ~13% growth. Consequently, LIC’s RWRP market share expanded by ~60bps during YTDFY27. APE for the industry grew ~8% yoy during Jul-26, with the private sector growing ~4% and LIC growing ~14% (led by healthy growth in group APE). Among private listed players, Axis Max Life maintained its position as the fastest-growing insurer, clocking healthy ~15% retail APE growth, while SBI Life delivered healthy ~14% growth. ICICI Pru Life’s RWRP grew ~9% yoy, while its reported retail APE grew ~12% yoy in Jul-26. HDFC Life saw ~7% yoy decline, likely led by a slowdown in the HDFC Bank channel. Canara HSBC Life clocked strong ~22% yoy retail APE growth. 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%

Industry witnesses a slowdown in growth momentum

The Life Insurance industry’s growth momentum slowed, with retail APE growing ~9% yoy, led by ~8% growth for the private sector, whereas LIC posted ~10% growth on a low base. On a 2Y CAGR basis, the industry delivered ~9% growth, driven by ~11% growth for the private sector, while LIC reported ~5% growth. Group APE for the industry grew ~5% yoy during Jul-26, with the private sector witnessing a ~12% decline, whereas LIC clocked ~20% growth. As a result, APE for the industry grew ~8% yoy, with private sector APE growing ~5%, whereas LIC’s APE grew ~14%. During YTDFY27, the industry’s retail APE grew ~14%, led by ~16% growth for LIC, whereas private sector clocked ~13% growth. Consequently, LIC’s RWRP market share rose by 60bps yoy to 30.6%. The industry’s total APE grew ~18% yoy during YTDFY27, led by ~20% growth for the private sector and ~16% growth for LIC.

Axis Max Life and SBI Life perform well; HDFC Life witnesses a decline

Among private listed players, Axis Max Life remained the fastest-growing insurer, clocking ~15% yoy retail APE growth in Jul-26, whereas SBI Life logged healthy ~14% growth. ICICI Pru Life reported ~9% yoy RWRP growth, while its reported retail APE grew ~12% during Jul-26. HDFC Life witnessed a ~7% yoy decline, likely owing to the slowdown in the HDFC Bank channel. Canara HSBC Life clocked strong 22% yoy retail APE growth in Jul-26. On a 2Y CAGR basis, Axis Max Life topped the charts, clocking ~15% growth, followed by SBI Life at 11.5% and HDFC Life at ~8%. Canara HSBC Life clocked a strong 2Y retail APE CAGR of ~18% in Jul-26. During YTDFY27, Axis Max Life clocked strong 16% retail APE growth, while SBI Life reported 14% growth and HDFC Life saw ~3% growth. ICICI Pru Life’s reported retail APE grew ~10% in YTDFY27. During YTDFY27, Canara HSBC Life clocked strong ~19% retail APE growth. Led by continued growth, Axis Max Life gained 20bps RWRP market share, while SBI Life saw ~10bps market share expansion; HDFC Life lost significant market share. Among private players, Bajaj Life delivered ~15% yoy growth in Jul-26, while Tata AIA Life saw muted ~1% growth.

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. Life Insurance stocks have witnessed corrections over the past few months on regulatory overhangs. At current levels, valuations inadequately capture the franchise strengths—brand, distribution reach, and scale of these players, offering an attractive entry point, in our view.

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