Insurance Sector Results Preview: APE Growth Maybe Moderate

For life insurers, APE growth may be moderate with modest VNB margin unlike the third quarter, which witnessed stable margins for insurance companies, Sharekhan has said in a report.

“ULIP products are likely to be slower while annuity and credit life products is likely to have robust demand during the quarter. Further, the demand for protection is also expected to remain subdued. VNB margin is expected to remain at 3-8% in Q4FY2022 ILGI is likely to report GDPI growth of ~8% yoy, aided by strong health, fire, motor TP, and personal accident segments,” the brokerage has said.

Among the stocks from the sector that are a top pick include names like ICICI Prudential Life Insurance Co., Max Financial Services, and HDFC Life Insurance.