Life Insurance Shares in Focus as HDFC Life and Max Financial Hit Record Highs
Shares of listed life insurance companies were in the spotlight on Friday, gaining up to 4% on the Bombay Stock Exchange (BSE) during intra-day trade. Max Financial Services rose 4% to ₹1,467.50, while HDFC Life Insurance Company increased 2% to ₹770.95, both hitting their respective all-time highs. Other life insurance companies, including SBI Life Insurance Company, ICICI Prudential Life Insurance Company, and Life Insurance Corporation of India (LIC), also saw gains ranging from 2% to 3%.
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In the calendar year 2025 so far, Max Financial Services, SBI Life, and HDFC Life have seen their stock prices rally between 25% and 33%. This surge contrasts with a 4% rise in the BSE Sensex during the same period. LIC and ICICI Prudential Life Insurance Company have seen their market prices decline by up to 4%.
The insurance sector in India is expected to grow significantly due to factors such as a large protection gap and increasing per capita income. According to Mirae Asset Sharekhan, strong players with the right mix of products, services, and distribution are likely to benefit disproportionately from this growth opportunity. However, regulatory changes and competition may impact growth and profitability.
Analysts at Elara Capital have a positive outlook on HDFC Life Insurance, citing its 10% year-on-year APE (annualized premium equivalent) growth in the March 2025 quarter, driven by growth in participating products, retail annuity, retail protection, and unit-linked products. They have raised their target price to ₹870 and upgraded their rating to ‘Buy’.
Emkay Global Financial Services has reiterated its ‘Buy’ rating on SBI Life, expecting 20-25% retail APE growth in the agency channel and stable margin outlook. They have revised their target price to ₹1,950.
The life insurance industry’s growth potential, coupled with the strong performance of key players like HDFC Life and Max Financial Services, has put these stocks in focus.
