Monthly Update on Insurance by PL Capital
Growth momentum sustains; outlook remains watchful
Quick Pointers
* In Mar’26, growth in individual APE for private life insurers grew by 7.8% YoY led by SBI Life and Axis Max Life registering YoY growth of 7.8% and 6.9% respectively.
* Industry group APE grew 16.0% YoY led by private insurers (+39.3% YoY).
* FY27 VNB margin to improve as impact of GST neutralizes. Reiterate BUY on MAXF (TP of INR2,040 at 2.2x FY27E P/EV).
Growth momentum steady; Axis Max Life leads in FY26: Private players saw a steady individual APE growth in Mar’26 (7.8% YoY vs. 20.1%/7.2% in Feb’26/Jan’26). Within our coverage, SBI Life witnessed a growth of 8.5% YoY, followed by Axis Max Life (+6.9% YoY). However, IPRU Life and HDFC Life recorded a de-growth of 0.9% and 0.3% YoY respectively. Other players like Aditya Birla Sun Life, Bajaj Life, Tata AIA saw a sustained growth in volume (6.2%/ 6.7%/ 16.0% YoY respectively), while LIC also saw an uptick of 9.9% YoY. In FY26, the industry grew by 10.1% YoY, with private players performing better (+12.2% YoY) especially Axis Max Life which grew by 18.7% YoY and SBI Life by 13.1%. HDFC Life registered an Individual APE growth of 7.7% YoY in FY26 while IPRU saw a decline of 1.2% YoY. The near-term outlook remains cautious amid global uncertainties; expect growth to see a gradual improvement driven by sustained growth in protection.
Private players push growth in group business: Industry witnessed healthy growth in group APE (+16.0% YoY), supported by private insurers (+39.3% YoY). Growth for LIC was lower at 9.6% YoY (vs. 37.0% in Feb’26); SBI Life, Axis Max Life, HDFC Life and IPRU Life saw a surge in volume by 63.3%/ 56.2%/ 31.5%/22.0% YoY respectively.
Private players’ market share steady: SBI Life has maintained its market leadership position at 16.5% share in individual APE (YTD basis), while HDFC Life/Axis Max Life/ IPRU Life’s market share stood at 10.9%/7.5%/6.2%. Overall, the private sector’s market share declined slightly to 71.9% (vs. 72.4% in Feb’26), while LIC’s share increased to 28.1% (vs. 27.6% in Feb’26).
Strong growth in new business volume: New business premium (NBP) for private players saw a robust growth of 32.7% YoY (vs. 11.6%/ 17.2% YoY in Feb’26/Jan’26). Among our coverage universe, IPRU Life posted highest growth (+46.5% YoY), followed by SBI Life at 26.4% YoY, HDFC Life at 15.1% YoY and Axis Max Life at 11.1% YoY. LIC’s NBP witnessed a growth of 17.3% YoY, resulting in industry NBP growth of 23.5% YoY. On FY26 basis, industry NBP has grown by 16.0% YoY.
Prefer MAXF among private life insurers: In our coverage universe, Axis Max Life has delivered a strong APE growth of 19% YoY in FY26. As the drag from impact of GST neutralizes in FY27, VNB margin is expected to improve supported by better product mix. Reiterate BUY on MAXF (TP of INR 2,040 at 2.2x FY27E P/EV).
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