Most listed life insurers reported an improvement in Value of New Business (VNB) margins during H1 FY27, supported by stronger contributions from protection, traditional savings and annuity products. LIC’s VNB margin increased 470 basis points to 22.3%, from 17.6% a year earlier, while its annualised premium equivalent grew 5.72% to ₹29,034 crore. LIC’s ULIP APE declined nearly 40% to ₹1,880 crore, while non-participating savings business grew 35%. Axis Max Life’s VNB margin rose to 25.4%, ICICI Prudential Life’s to 26%, and Canara HSBC Life’s to 21.3%.
The shift in product mix is emerging as an important driver of life insurers’ profitability. At Axis Max Life, the share of annuity products doubled to 16%, while protection and health increased to 14%; at ICICI Prudential Life, protection’s share of APE rose to 23.4% from 19.3%. Canara HSBC Life also reported a 44% increase in protection APE, while SBI Life’s VNB margin remained broadly stable at 27.9%. HDFC Life was an exception to the broader moderation in ULIPs, with their share rising to 45% of individual APE. The trend suggests that insurers are increasingly balancing growth with product-mix optimisation, protection penetration and margin quality.
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