Life insurance stocks in focus — LIC premiums fall the most in Aug, Max Financial 'best' performer

Stocks of some life insurance companies surged on Thursday, September 7, as soon as August's insurance numbers were announced. The shares of Max Financial Services, the holding company for Max Life Insurance, rose 2 percent to Rs 951.10 apiece on BSE on news of a 35.6 percent year-on-year (YoY) surge in new business premiums in August.

SBI Life Insurance also spiked nearly 2 percent to Rs 1,344.15 apiece on BSE as the company continued its upward trajectory with its new business premium rising by 15.7 percent year-on-year (YoY). HDFC Life Insurance company rose over 1 percent on the BSE to Rs 652 apiece on robust performance in August.

In contrast, shares of ICICI Prudential and insurance behemoth Life Insurance Corporation (LIC) dipped. ICICI Prudential shares dropped 3 percent to Rs 521.80 apiece on the BSE as the company's premium fell in August. LIC’s premium dropped the most while annualised premium equivalent (APE) saw a minor rise.

At the time of writing this report, SBI Life Insurance continued its upward trajectory, trading at 1.47 percent higher, with shares priced at Rs 1,337.50 on the BSE. HDFC Life Insurance also maintained an upward trend, trading 0.66 percent higher at Rs 651.40 apiece.

The company reported a robust performance with its new business premium surging by 24.9 percent year-on-year (YoY). This substantial increase was accompanied by a notable 16 percent YoY growth in the retail Annualised Premium Equivalent (APE).

SBI Life Insurance continued its upward trajectory with a new business premium rising by 15.7 percent YoY. The company also boasted a significant 34 percent YoY growth in retail APE.

The company recorded remarkable growth with its new business premium surging by 35.6 percent YoY. This performance was further highlighted by an increase of 48.5 percent YoY in retail APE.

On the other hand, LIC, the nation's largest life insurer, faced a challenging month. Its new business premium experienced a substantial decline of 34.7 percent YoY. However, the company managed to keep its head above water with a modest increase of 3 percent YoY in retail APE.

This mixed performance was indicative of the competitive landscape within the life insurance sector, where established giants are navigating turbulent waters.

ICICI Prudential experienced a decrease in new business premiums by 5.4 percent YoY. However, it demonstrated resilience with a significant boost of 12.3 percent YoY in retail APE.