Jefferies revealed that as of December 23, retail annual premium equivalent (APE) growth had improved significantly, reaching 9% year-on-year, compared with 4% combined in October and November.
In a recent Jefferies report on insurance companies, HDFC Life and SBI Life emerged as the top picks in the insurance sector. The report sheds light on the overall performance of life insurance companies, focusing on key insurers and their growth trajectory.
According to Jefferies, HDFC Life and SBI Life are standout picks in the insurance space, reflecting confidence in their future performance.
The report looks at the performance of life insurance premiums in December 2023, noting notable growth growth. Jefferies revealed that as of December 23, retail annual premium equivalent (APE) growth had improved significantly, reaching 9% year-on-year, compared with 4% combined in October and November.
Private insurers continued to outperform the market, with overall growth in premium equivalent (OPF) of +11% year-on-year, gaining market share to the detriment of LIC (+2%). Among listed companies, SBI Life stands out with a strong comeback, recording 20% year-on-year growth.
While some companies are experiencing strong growth, others are experiencing a slowdown. Max Life’s growth slowed to 15% and ICICI Prudential’s growth was recorded at 13%, compared to 8% in the combined months of October and November. HDFC Life faces a notable challenge, marking its weakest performance with a rating of 5% in December 2023.
The report highlights the impressive growth of unlisted companies such as Bajaj, Tata and Birla, with growth rates of 20%, 17% and 10% respectively over the same period last year.
Below are Jefferies’ key recommendations in the insurance sector
HDFC Life Insurance: ‘BUY’ rating for target Rs 1,990,000,800 crore
SBI Life Insurance: “BUY” rating targets Rs. 1,990,000,1700
ICICI Lombard General Insurance: “BUY” rating for target of Rs 1,990,000 crore. 5:30 p.m
ICICI Prudential Life Insurance: “BUY” rating for target of Rs. 1,999. 630
Maximum Financial Services: “BUY” rating for target of Rs. 1,990,000,1200
For more information, visit at https://happenrecently.com/zepto/?amp=1
