Life insurance witnessing growth revival amid margin pressures
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Life insurance witnessing growth revival amid margin pressures

Sector outlook appears optimistic, as current valuations suggest promising opportunities for future growth, says a Kotak Institutional Equities report


Life insurance companies reported pressure on their margins due to a shift in product mix away from high-margin non-par to lower product-level margins. Growth for listed players has been gradually picking up, and will likely accelerate hereon, even as the margin outlook remains muted. Listed life insurance companies are gradually reporting an improvement in business momentum. This follows...

Life insurance companies reported pressure on their margins due to a shift in product mix away from high-margin non-par to lower product-level margins.

Growth for listed players has been gradually picking up, and will likely accelerate hereon, even as the margin outlook remains muted. Listed life insurance companies are gradually reporting an improvement in business momentum. This follows a sluggish April, which saw fatigue after a hectic March 2023.

Notable performance among other key players includes a strong comeback by Aditya Birla and consistent Tata AIA growth, both largely driven by agency and direct channels.

Overall, the outlook for life insurance companies remains positive, with current valuations indicating promising growth prospects ahead, according to a report by Kotak Institutional Equities.

Read the report here.

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