HSBC said its review of Q2FY26 performance across life insurers indicates two clear trends: companies are prioritising growth to strengthen market share, and product margins and mix are improving steadily. The brokerage believes the impact of recent GST changes is temporary and that topline and margin trends should normalise once the transition phase settles.
According to HSBC, the sector is poised for healthy VNB growth over FY26–28, which could trigger a re-rating for leading insurers. The brokerage reiterated its positive stance on SBI Life and raised its target price to ₹2,300, citing strong execution, favourable product mix and continued leadership across key channels.
HSBC added that as competitive intensity stabilises and growth visibility improves, the industry may see stronger traction in both protection and savings categories.
Disclaimer: The views above are those of HSBC. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
