Life Insurers’ Q1FY27 Scorecard: Volume Growth Intact, Persistency Flagged as Gap — ICICI Securities
ICICI Securities said life insurers maintained strong volume growth in Q1FY27, while persistency remained a key gap.
ICICI Securities flags steady growth among life insurers, with persistency emerging as an area of concern in Q1FY27.
ICICI Securities: Indian life insurers reported strong volume and Value of New Business (VNB) growth in the first quarter of FY27, with most companies managing the impact of GST-related product changes while holding or improving their margins year-on-year, according to a sector update published by ICICI Securities on September 8, 2026. The brokerage’s analysts — Ansuman Deb, Shubham Prajapati, Shubh Walia and Rishav Bajaj — said the quarter’s results and management commentary pointed to steady-to-improving margins across the industry, with growth recorded in both retail and group protection segments. The report identified a need for improved persistency across most players as the sector’s primary area of concern.
ICICI Securities: Company-wise Q1FY27 performance
According to the report, SBI Life recorded diversified growth in distribution during the quarter, with bancassurance channel growth of 10.4% year-on-year and agency channel growth of 23.9% year-on-year. The company’s year-to-date total Annualised Premium Equivalent (APE) volume grew 24.8% year-on-year. SBI Life’s total APE for Q1FY27 stood at INR 53.8 billion, down 6.4% quarter-on-quarter but up 35.5% year-on-year, while VNB came in at INR 14.1 billion, up 29.4% year-on-year, and VNB margin was 26.2%, down 125 basis points year-on-year, the report showed.
HDFC Life could see improved traction from HDFC Bank’s distribution channel going forward amid a better competitive environment, the report said, adding that the company’s year-to-date total APE volume had grown 7.8% year-on-year. HDFC Life’s Q1FY27 total APE was INR 35.2 billion, up 9.0% year-on-year, with VNB of INR 8.8 billion, up 8.7% year-on-year, and a VNB margin of 25.0%, roughly flat year-on-year at -8 basis points, according to the data cited in the report.
ICICI Securities said ICICI Prudential Life (IPRU Life) showed a gradual, distinct recovery in volumes alongside steady margins, reflected in VNB growth of 24.9% year-on-year for Q1FY27. The company’s year-to-date total APE volume grew 16.4% year-on-year. IPRU Life’s Q1FY27 total APE stood at INR 21.4 billion, VNB at INR 5.7 billion, and VNB margin at 26.7%, up 222 basis points year-on-year, per the report.
Aditya Birla Sun Life (ABSL) Insurance continued to grow its bancassurance partnerships significantly, with 25% growth reported in Q1FY27, the brokerage said. ABSL’s total APE for the quarter was INR 11.1 billion, up 25.7% year-on-year, with VNB of INR 1.7 billion, up 153.0% year-on-year, and VNB margin of 15.1%, up 760 basis points year-on-year.
LIC reported VNB growth of more than 60% year-on-year in Q1FY27, with management guidance indicating VNB margins would sustain at high levels of around 25%, according to the report. LIC’s year-to-date total APE volume grew 13.2% year-on-year. The insurer’s Q1FY27 total APE was INR 136.9 billion, VNB was INR 31.36 billion, and VNB margin stood at 22.9%, up 754 basis points year-on-year, the report said.
Max Life posted Q1FY27 total APE of INR 19.2 billion, up 15.2% year-on-year, VNB of INR 4.46 billion, up 33.1% year-on-year, and a VNB margin of 23.2%, up 312 basis points year-on-year. Bajaj Life reported Q1FY27 total APE of INR 17.1 billion, up 30.2% year-on-year, VNB of INR 2.7 billion, up 86.9% year-on-year, and VNB margin of 15.9%, up 482 basis points year-on-year. Canara HSBC Life recorded Q1FY27 total APE of INR 5.9 billion, up 18.7% year-on-year, VNB of INR 1.2 billion, up 29.2% year-on-year, and VNB margin of 21.2%, up 172 basis points year-on-year, the report showed.
ICICI Securities: Sector-wide volume and sum assured trends
For August 2026, ICICI Securities data showed total industry individual weighted APE at INR 1,09,004 million, up 14.3% year-on-year, and total weighted APE at INR 1,47,383 million, up 9.1% year-on-year. Total New Business Premium (NBP) for the industry stood at INR 4,11,978 million, up 33.1% year-on-year, though Number of Policies (NOP) declined 3.3% year-on-year to 20,73,312.
Among individual companies for August 2026, the report showed Bajaj Allianz’s individual weighted APE up 9.4% year-on-year to INR 6,131 million; Max Life’s up 10.2% year-on-year to INR 8,207 million; Tata AIA’s up 18.8% year-on-year to INR 8,285 million; Kotak Life’s up 20.8% year-on-year to INR 2,345 million; and LIC’s up 12.8% year-on-year to INR 30,171 million. Private industry individual weighted APE for August grew 14.9% year-on-year to INR 78,833 million, per the report.
On sum assured, the report’s data showed private industry individual sum assured grew 12.5% year-on-year in July 2026, with year-to-date FY27 growth of 22.6%. Among individual insurers, Canara HSBC Life recorded the highest year-to-date individual sum assured growth at 70.1%, followed by IPRU Life at 39.1% and SBI Life at 41.7%, according to the data. LIC’s individual sum assured grew 6.3% year-to-date FY27, the slowest pace among the companies listed in the report.
ICICI Securities: Persistency remains the key area flagged for improvement
ICICI Securities identified a need for improved persistency across most life insurers as the primary area of concern in an otherwise positive volume environment. The report also pointed to strong outlook commentary for credit life products linked to microfinance institutions (MFI) as well as non-participating products, and said annuity growth had been strong, with some insurers positioned to benefit further from the planned launch and scale-up of deferred annuity products. Rider attachment was cited as a key margin driver for most companies during the quarter.
