Insurers likely to report robust growth amid market tailwinds
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Listed private life insurers are set to report strong annualised premium equivalent growth, driven by a lower base and buoyant equity markets. However, the value of new business (VNB) margins will be muted due to increased sales of unit-linked insurance plans and pressure on group term pricing. General insurance companies are expected to show improved profitability, benefiting from a low claims ratio amid strong growth in motor, health, and commercial lines. Life insurers will adjust to new surrender value regulations this year, compressing their VNB margins in the second half of fiscal year. The life insurance industry experienced muted growth in Q1FY24 due to a surge in high-value non-par policy sales in the preceding quarter before the change in taxation policies. From April 2023, the government removed tax benefits from all non-par policies with aggregate premiums of ₹5 lakh and above per year. Insurers are likely to report APE growth...