HDFC Life aims to maintain a balanced product mixture and acquire a high market share, which focuses on geographical expansion and customer acquisition. SBI Life reported a strong performance during the quarter, in which the app and VNB beat our estimates by 5%.
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Motilal Oswal Report
During Q3 FY25, the life insurance industry saw an ~ 8% yoy growth, which was operated by private life insurers ~ 22% yoy development, while LIC saw a decline of ~ 17% yoy. For 9 meter FY25, the industry and private insurers increased 14% and 20% yoy respectively. HDFC Life /ICICI PRDENTICAL LIFE /Max Life /SBI LIFE gave better-than-industry development of 12% /28% /13% /17% yoy.
The VNB performance was mixed for companies listed in Q3 FY25. While ICICI LIFE and SBI Life posted VNB increase of 19% and 11% respectively, HDFC Life’s VNB growth was 9% YOY. VNB was flat for maximum life. For LIC, the decline in APE caused a 27% yoy decline in VNB.
On a YOY basis, the VNB margin for the industry remained under pressure due to the more ratio of the ULIP in the product mixture and the impact of the modified dedication value rules. However, the change in the payment structure of the commission and the decline in the yield of bonds as well as reevaloing the prices of non-burban products, improved sequential margins for some players.
High-margin in product mixture can also contribute to non-linked products such as non-symbol, annuity and protection to VNB margin recovery.
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Rejuvenation
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