Axis Max Life, Max Financial approve merger plan
The boards of Axis Max Life Insurance and Max Financial Services Ltd have granted in-principle approval for their proposed amalgamation.
Under the scheme, Max Financial Services will merge into Axis Max Life Insurance, with shareholders of MFSL receiving shares of the insurer based on a share entitlement ratio to be finalised. The proposal is subject to approvals from Axis Bank, Axis Securities and Axis Capital, which together hold about 19.02 per cent in the insurer.
The merger is enabled by the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, and will require approval from the Insurance Regulatory and Development Authority of India.
Canara HSBC Life Q3 profit dips despite 43% premium growth
Canara HSBC Life Insurance reported a 5.69 per cent decline in Q3FY26 net profit to Rs. 27.65 crore, even as net premium income surged 42.98 per cent to Rs. 2,867 crore.
First-year premium rose 28 per cent while renewal premium grew 43 per cent. Persistency ratios improved, with the 13th month ratio rising to 84.7 per cent. The expenses of management ratio declined to 18.3 per cent, though solvency moderated to 191 per cent.
For 9MFY26, Annualised Premium Equivalent grew 22.3 per cent and Value of New Business rose 36.8 per cent, reflecting strong protection-led growth.
Economic Survey flags high acquisition costs in insurance
The Economic Survey has highlighted rising customer acquisition costs as a structural challenge for India’s insurance sector.
It noted that commissions and distributor incentives are distorting market behaviour, contributing to mis-selling and limiting expansion of the risk pool. While insurance density rose to $97 in FY25, penetration slipped to 3.7 per cent, reflecting what the Survey termed a “penetration–density paradox”.
The Survey emphasised that achieving “Insurance for All by 2047” will require policy-led reforms, including legislative changes under the Sabka Bima Sabki Suraksha Act, 2025, to attract long-term capital and rationalise distribution economics.
LIC Q3 profit rises 17% on premium and investment gains
Life Insurance Corporation of India posted a 17 per cent rise in standalone Q3 net profit to Rs. 12,958 crore.
Net premium income increased 17.5 per cent to Rs. 1,25,613 crore, while investment income grew 14 per cent. Assets Under Management expanded 8 per cent year-on-year to Rs. 59.16 lakh crore.
Expenses of management rose 8 per cent, and benefits paid increased 20 per cent. The insurer also reported equity profits of around Rs. 24,000 crore in Q3FY26. Senior management indicated plans to optimise its real estate portfolio and expand bancassurance and alternate channels, while not rushing into the health insurance segment.
LIC reviews real estate strategy to enhance yields
Life Insurance Corporation of India is evaluating measures to increase returns from its real estate portfolio, which has a book value of around Rs. 16,000 crore post-revaluation and a market value exceeding Rs. 45,000 crore.
Officials indicated that while rental yields typically range between 3–4 per cent, capital appreciation remains significant. The insurer is reviewing options to enhance income generation rather than pursue outright asset sales. It is also open to examining structures such as Real Estate Investment Trust-like models, though no final decision has been taken.
The corporation has slowed plans to acquire a strategic stake in a standalone health insurer. For Q3FY26, LIC reported a standalone net profit of Rs. 12,958 crore, up 17.2 per cent year-on-year, with net premium income rising 17.5 per cent.
Life insurance awareness drive reaches 35.5 crore people
The industry-wide “Sabse Pehle Life Insurance” campaign has reached approximately 35.5 crore people by December 2025, according to the Insurance Awareness Committee (Life).
Launched in July 2025, the multilingual campaign spans protection, annuity and savings segments. During July–September 2025, it reached 31 crore individuals, including 17 crore through digital channels.
The campaign leveraged television advertising during major cricket series, print media, outdoor campaigns across 17 cities, wall murals in 325 towns and on-ground engagement through agents and bancassurance partners.
Despite the outreach, life insurance penetration declined marginally from 2.8 per cent in 2023–24 to 2.7 per cent in 2024–25, highlighting the need for sustained efforts in semi-urban and rural markets.
Life insurers’ premiums jump 21.6% in January
Life insurers recorded a 21.58 per cent year-on-year rise in new business premiums to Rs. 37,478 crore in January, supported by GST rationalisation and favourable base effects.
Life Insurance Corporation of India reported 25.46 per cent growth in new business premiums to Rs. 20,441 crore, while private insurers posted 17.24 per cent growth.
Individual premiums rose 12.62 per cent, whereas group business surged 40.6 per cent. Non-life insurers registered 14.88 per cent growth, with standalone health insurers expanding 23.56 per cent.
Analysts attributed the uptick to GST reduction on individual life and health insurance premiums and the normalisation of accounting norms.
SBI Life Q3 profit rises nearly 5%
SBI Life Insurance posted a nearly 5 per cent increase in Q3 net profit to Rs. 5.77 billion for the quarter ended December 31.
Net premium income grew 22 per cent to Rs. 302.45 billion, driven by a 24 per cent rise in single premiums and nearly 21 per cent growth in renewal premiums.
However, management expenses surged over 45 per cent to Rs. 35.19 billion, reflecting higher commission payouts and employee costs.
The insurer benefited from improved retail demand following tax rationalisation on life insurance products, though cost pressures moderated overall profitability growth.
Economic Survey flags high costs behind low insurance penetration
India’s insurance sector continues to expand in absolute terms, but rising acquisition and administrative costs are constraining broader coverage, the Economic Survey for FY26 has noted.
According to the Survey, the industry remains caught in a “low-penetration, high-cost” equilibrium driven by an expensive distribution model that relies heavily on intermediaries across life and non-life segments. Despite ongoing digital transformation efforts, distribution overheads continue to absorb a significant share of premiums.
While insurance density rose to $97 in FY25, penetration declined to 3.7 per cent from 4 per cent in FY23. The Survey described this as a penetration–density paradox, indicating insurers are extracting more value from existing customers but failing to widen the risk pool. Premium growth has not kept pace with nominal GDP, eroding the sector’s relative economic size.
Total premium income increased to Rs. 11.9 lakh crore in FY25 from Rs. 8.3 lakh crore in FY21. The life segment accounts for about 75 per cent of premium income, while health insurance, with a 41 per cent share of non-life premiums, has overtaken motor insurance.
The Survey called for rationalisation of acquisition costs through deeper digitisation, improved pricing discipline and a shift towards more affordable, inclusive models to strengthen long-term financial stability.
