Shares of India’s leading insurers HDFC Life Insurance Company Ltd, Life Insurance Corporation of India (LIC), and General Insurance Corporation of India (GIC Re) gained in Monday’s trade amid positive brokerage recommendations and policy tailwinds.
HDFC Life was trading at Rs 785.65, up Rs 3.45 or 0.44 per cent, LIC rose to Rs 911.75, gaining Rs 18.20 or 2.04 per cent, while GIC Re climbed to Rs 367.00, up Rs 2.95 or 0.81 per cent as of early afternoon.
JPMorgan Upgrades HDFC Life and GIC Re
The rally followed a JPMorgan upgrade of HDFC Life and GIC Re to Overweight, with LIC retained as the brokerage’s top pick. Analysts highlighted that LIC, SBI Life, HDFC Life, and GIC Re remain among the most promising picks in India’s life insurance sector, supported by robust demographic trends and increasing insurance penetration. The brokerage also sees significant upside in the reinsurance segment, citing GIC Re’s diversified portfolio and presence across emerging areas such as cyber insurance and surety bonds.
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GST Exemption on Premiums to Drive Demand
India’s new GST exemption on health and life insurance premiums, effective September 22, is expected to reduce costs for insurers and policyholders. HDFC Life described the move as “structurally positive,” predicting it will spur demand, improve penetration, enhance persistency, and accelerate long-term growth. The company reported a Value of New Business (VNB) of Rs 809 crore for Q1 FY26, a 12.7 per cent year-on-year increase, with a two-year CAGR of 15 per cent and new business margins steady at 25.1 per cent. The GST change is expected to have a minimal impact (less than 0.5 per cent) on Embedded Value (EV).
Non-Life Insurance Segment Remains Attractive
The non-life and reinsurance sector is projected to grow 13–15 per cent annually over the next few years, driven by health, motor, and emerging segments. GIC Re emphasized that its strong underwriting discipline and diversified portfolio position it well to capitalize on this growth.
