ICICI Securities has provided an analysis of the life insurance sector, focusing on key players such as HDFC Life, SBI Life, and ICICI Prudential Life.

Key observations include:

  1. Private sector market share gains: Private life insurers have been steadily gaining market share, with HDFC Life and ICICI Prudential Life being among the top gainers.
  2. Individual weighted received premium (WRP) growth: ICICI Prudential Life and SBI Life have shown strong growth in individual WRP, with ICICI Prudential Life outpacing the industry average.
  3. Protection business growth: HDFC Life and ICICI Prudential Life have reported significant growth in their protection business, driven by increasing demand for term insurance products.
  4. VNB margin expansion: SBI Life and ICICI Prudential Life have seen an expansion in their value of new business (VNB) margins, driven by improved product mixes and cost efficiencies.
  5. Investment income: All three insurers have reported strong investment income, driven by a rising interest rate environment and higher yields on their investment portfolios.

The analysis highlights the strengths and weaknesses of each insurer, with HDFC Life and ICICI Prudential Life expected to maintain their growth momentum, while SBI Life is expected to gain traction in the protection business and VNB margin expansion.

by | Aug 25, 2025 | HDFC Standard Life, ICICI Prudential Life, Insurance, LIC

The life insurance industry in India has experienced strong growth in the first four months of the fiscal year 2026, according to a report by ICICI Securities. The industry’s annual premium equivalent (APE) has increased by 13.7% year-on-year, while the sum assured has expanded by 25.1%. This growth is attributed to product diversification and evolving distribution strategies. Private life insurers have performed well, with SBI Life, ICICI Prudential, and Axis Max Life emerging as top performers in individual sum assured growth.

The report highlights that the agency channel has faced challenges due to a shift away from high-ticket unit-linked insurance plans (ULIPs) towards guaranteed and protection products. However, bancassurance has continued to deliver steady growth, with companies like HDFC Life, SBI Life, and Axis Max Life posting year-on-year growth of 10.7%, 6.9%, and 16.5%, respectively.

The growth in sum assured has been driven by retail protection products, particularly pure term plans, which have outpaced return-of-premium offerings. Companies like SBI Life have rebalanced their product mix by reducing their exposure to return-of-premium products and focusing on term products to enhance profitability.

In terms of profitability, ICICI Securities has noted margin improvements across all listed insurers, including LIC, supported by higher volumes and operational efficiencies. The brokerage firm expects the life insurance sector to sustain its growth trajectory through balanced volume and margin strategies, broader product offerings, digital adoption, and stronger distribution networks.

Overall, the life insurance industry in India is expected to continue growing, driven by increasing demand for protection products and the adoption of digital technologies. The industry’s ability to diversify its products and distribution channels is likely to support its growth momentum in the coming months. With a strong foundation in place, the life insurance sector is poised to remain a key player in the Indian financial services industry.