Private life insurance companies continued their strong performance in December 2024, recording an 11.4% year-on-year growth in individual annual premium equivalent (APE). In contrast, LIC experienced a sharp 13% decline in individual APE, highlighting the widening gap between private insurers and the state-run giant.
Private Players Maintain Momentum
The 12.3% increase in individual APE at HDFC Life helped drive overall growth to 8.8%, partly due to a steep decline of 21% in group APE. Analysts remain optimistic on HDFC Life, with an “Buy” rating and target price of ₹820 per share.
SBI Life reported a 16% increase in individual APE for December 2024, against a high base recorded in the corresponding period last year. On the back of its strong performance trajectory, analysts have also maintained an “accumulate” rating on SBI with a target price of ₹1,980.
The company posted a 15.6% year-on-year growth in total APE, riding on a 56.6% rise witnessed in group business APE. The analysts gave an “hold” rating for ICICI Prudential but mentioned the target price of ₹740 for the stock.
Max Financial Services stretched the growth streak with a 10.3% increase in overall APE and an 11.2% rise in individual APE. Analysts remained confident of its prospects and retained the “buy” rating with a target price of ₹1,470.
But LIC failed to keep pace with private peers. The state-run insurer reported a 13% decline in individual APE and 28.9% fall in total APE for December 2024. Analysts said LIC’s performance underlines the increasing bias of the consumer for private players in the life insurance space.
Industry experts will also be keenly watching how new regulations on surrender values, among other changes, will affect the growth trajectory in the coming months.
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Source: Moneycontrol
News Desk
