CONNECT WITH US
Fintech

Fintech

Insurers’ Q2 outlook: LIC leads VNB growth, HDFC Life recovery may moderate

ET BFSI Fintech logo

Published on

Add as a preferred source on Google
Insurers’ Q2 outlook: LIC leads VNB growth, HDFC Life recovery may moderate

Insurers’ Q2 outlook: LIC leads VNB growth, HDFC Life recovery may moderate

The impact of proposed changes to insurance distribution payouts and expense of management (EoM) norms is expected to dominate insurers’ Q2FY27 earnings calls and stock performance, with less emphasis on quarterly financial results. Protection business growth is supporting life insurers’ margins and value of new business (VNB), while motor third party (TP) claims provisioning will be a key driver for general insurers.

LIC’s VNB is forecast to rise 40 per cent, with margins expanding to 22.5 per cent. Proposed distribution payout and EoM changes are expected to dominate earnings discussions. Insurers could face weaker growth in FY2028 as they adjust to new regulations. Motor TP claims will be a key monitorable, with ICICI Lombard best placed to adapt to proposed commission changes.

Private life insurers under coverage are expected to report 10-15 per cent year-on-year growth in annualised premium equivalent (APE) and 6-18 per cent growth in VNB, with margins ranging from a 200 basis point contraction to a 150 basis point expansion. Strong protection business growth and the resolution of concerns over margin losses following the GST exemption are expected to support performance. Health claims typically rise in the second quarter, although structural improvements and higher operating leverage continue to support core earnings. PB is expected to maintain steady growth, according to Kotak Institutional Equities. Advt

Life insurers: Mixed growth outlook HDFC Life: APE fell 2 per cent year-on-year in July 2026 against a high base before recovering to 17 per cent growth in August.


Source link
Related Topics:Fintech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.