ICICI Life, HDFC Life, SBI Life, Max Financial shares climb; here's what HSBC says

Shares of life insurance companies, including ICICI Life Insurance Ltd, HDFC Life Insurance Company Ltd, SBI Life Insurance Company Ltd and Max Financial Services Ltd, rose in Thursday's trade.

At the last check, ICICI Life, HDFC Life and Max Financial were trading 4.25 per cent, 4.08 per cent and 4.06 per cent higher, respectively. SBI Life was up 3.05 per cent.

According to HSBC Global, individual annual premium equivalent (APE) growth among large private insurers remained mixed in October 2026. HDFC Life reported 16 per cent year-on-year (YoY) growth in individual APE. Max Financial also saw an improvement, with individual APE growth rising to 12 per cent YoY, compared with low-single-digit growth in September 2026.

In contrast, SBI Life and ICICI Life reported broadly flat individual APE growth during the month.

For the first seven months of FY27 (7MFY27), Max Financial led the listed insurers tracked by HSBC, with weighted individual APE growth of 12 per cent YoY. HDFC Life and SBI Life followed at 10 per cent each, while ICICI Life recorded 8 per cent growth.

Industry APE growth moderates in October

HSBC said industry individual APE growth moderated to around 5 per cent YoY in October 2026, compared with around 9 per cent in September. The moderation was primarily attributed to subdued festive-season demand and a higher comparative base following the GST cuts.

Private insurers also reported muted individual APE growth of around 5 per cent. However, group APE continued to perform strongly, rising 38 per cent YoY and supporting total industry APE growth of 13 per cent.

The average ticket size declined, reflecting weaker demand for linked products amid subdued equity-market conditions.

Looking ahead, HSBC expects individual APE growth to improve, supported by continued demand for annuity and retail protection products, a potential recovery in non-participating products as the gap between internal rates of return (IRRs) and deposit rates widens, and improving equity-market trends that could support demand for linked products.

The brokerage also noted that the low base in the fourth quarter of FY27 could provide additional support to growth.

HSBC remains positive on life insurance sector

On regulatory developments, HSBC said most listed insurers expressed confidence in meeting the proposed expense of management (EoM) limits within the prescribed timelines during their Q2 FY27 earnings calls.

However, industry participants are seeking three key relaxations: a longer glide path for achieving the EoM limits, higher commission limits for credit-life insurance to facilitate coverage for more lives, and the introduction of scale-based regulations to reduce the disadvantage faced by smaller and newer insurers under the proposed norms.