Equity Research Analyst - Long-Short

Raj S, CA, CFA

Thematic (Sector/Industry)

<ul>
<li>We discuss the recent developments and financial performance of Indian Life Insurers note in this Primer</li>
<li>The big news this quarter is that a significant regulatory risk has passed on without any dent. This has turned the outlook on the sector more positive.</li>
<li>Expect a secular low-mid double-digit premium growth for the Neutral on <a href="https://www.smartkarma.com/entities/hdfc-standard-life-insurance" target="_blank" data-smartkarma-citation="entities:26004:1" rel="noopener">HDFCLIFE IN</a> Short on <a href="https://www.smartkarma.com/entities/icici-prudential-life-insurance" target="_blank" data-smartkarma-citation="entities:23608:1" rel="noopener">IPRU IN</a> and <a href="https://www.smartkarma.com/entities/life-insurance-corp-of-india" target="_blank" data-smartkarma-citation="entities:28829:1" rel="noopener">LICI IN</a>
</li>
</ul>


We discuss the recent developments and financial performance of Indian Life Insurers note in this Primer
The big news this quarter is that a significant regulatory risk has passed on without any dent. This has turned the outlook on the sector more positive.
Expect a secular low-mid double-digit premium growth for the Neutral on HDFCLIFE IN Short on IPRU IN and LICI IN



Indian Life Insurance Primer -  April 2024 Update (FY24)

Artoval Advisors

Art’o’val stands for Art of Valuation. Artoval Advisors LLP is a professionally run advisory firm catering to various financial advisory services including Valuation, Investment Research, Training, Accounting, CFO Services and other ancillary services.

We are passionate about what we do and strongly believe in working with our clients as their extended teams. With Artoval Advisors as their trusted partner, our clients find it easy to achieve efficiency in service delivery without compromising on quality.

True Art of Valuation

<ul>
<li>IRDAI has released an exposure draft proposing a substantial  reduction in surrender charges on Non-Par Guaranteed Life Insurance Products</li>
<li>The move aims to the remove penalizing surrender charges prevalent on Traditional Savings products with guaranteed RoI; this is the latest of moves aimed to improve policyholder protection</li>
<li>All life insurers are negatively impacted  <a href="https://www.smartkarma.com/entities/sbi-life-insurance-co-ltd" target="_blank" data-smartkarma-citation="entities:25899:1" rel="noopener">SBI Life Insurance Co Ltd (SBILIFE IN)</a><a href="https://www.smartkarma.com/entities/hdfc-standard-life-insurance" target="_blank" data-smartkarma-citation="entities:26004:1" rel="noopener">HDFC Life Insurance (HDFCLIFE IN)</a><a href="https://www.smartkarma.com/entities/icici-prudential-life-insurance" target="_blank" data-smartkarma-citation="entities:23608:1" rel="noopener">ICICI Prudential Life Insurance (IPRU IN)</a><a href="https://www.smartkarma.com/entities/life-insurance-corp-of-india" target="_blank" data-smartkarma-citation="entities:28829:1" rel="noopener">Life Insurance of India (LICI IN)</a> <a href="https://www.smartkarma.com/entities/icici-prudential-life-insurance" target="_blank" data-smartkarma-citation="entities:23608:1" rel="noopener"></a>
</li>
</ul>


IRDAI has released an exposure draft proposing a substantial  reduction in surrender charges on Non-Par Guaranteed Life Insurance Products
The move aims to the remove penalizing surrender charges prevalent on Traditional Savings products with guaranteed RoI; this is the latest of moves aimed to improve policyholder protection
All life insurers are negatively impacted  SBI Life Insurance Co Ltd (SBILIFE IN)HDFC Life Insurance (HDFCLIFE IN)ICICI Prudential Life Insurance (IPRU IN)Life Insurance of India (LICI IN) 



India Life Insurers: IRDAI Proposes Higher Surrender Values (SBILIFE IN/ HDFCLIFE IN/ IPRU IN/ LICI)

<ul>
<li>
Indian Life Insurance Sector is a play on lucrative Indian demographics, under-penetration of life insurance and retirement savings across cohorts of the population.</li>
<li>The large firms<a href="https://www.smartkarma.com/entities/sbi-life-insurance-co-ltd" target="_blank" data-smartkarma-citation="entities:25899:1" rel="noopener">SBI Life</a>, <a href="https://www.smartkarma.com/entities/hdfc-standard-life-insurance" target="_blank" data-smartkarma-citation="entities:26004:1" rel="noopener">HDFC Life</a> , <a href="https://www.smartkarma.com/entities/life-insurance-corp-of-india" target="_blank" data-smartkarma-citation="entities:28829:1" rel="noopener">LIC IN</a> , <a href="https://www.smartkarma.com/entities/icici-prudential-life-insurance" target="_blank" data-smartkarma-citation="entities:23608:1" rel="noopener">ICICI Pru</a>, <a href="https://www.smartkarma.com/entities/max-financial-services-ltd" target="_blank" data-smartkarma-citation="entities:2233:1" rel="noopener">MAXF IN</a> are ripe for long-term secular growth for decades to come as they dominate the market.
</li>
<li>This "Primer" sets the stage for the company-specific notes to follow. Here we discuss the sector level issues, key metrics and relative valuations. See attached PDF- Free access.
</li>
</ul>



Indian Life Insurance Sector is a play on lucrative Indian demographics, under-penetration of life insurance and retirement savings across cohorts of the population.
The large firmsSBI Life, HDFC Life , LIC IN , ICICI Pru, MAXF IN are ripe for long-term secular growth for decades to come as they dominate the market.

This "Primer" sets the stage for the company-specific notes to follow. Here we discuss the sector level issues, key metrics and relative valuations. See attached PDF- Free access.



Indian Life Insurance (And Savings) Sector Primer - Long-Term Potential and Strong Operating Margins

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

National Stock Exchange of India / Equity Capital Markets

National Stock Exchange of India (NSE IN)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/national-stock-exchange" target="_blank" data-smartkarma-citation="entities:23751:1" rel="noopener">National Stock Exchange (NSEIN IN)</a> is looking to raise upto US$2.5bn in its India IPO.</li>
<li>NSE operates electronic platforms for trading equities, derivatives, currencies, and debt securities, also earning revenue from clearing and settlement services, market data, index licensing, listing fees, connectivity, and technology services.</li>
<li>We have looked at the company’s past performance in our previous note. In this note, we will undertake a peer comparison.</li>
</ul>



National Stock Exchange (NSEIN IN) is looking to raise upto US$2.5bn in its India IPO.
NSE operates electronic platforms for trading equities, derivatives, currencies, and debt securities, also earning revenue from clearing and settlement services, market data, index licensing, listing fees, connectivity, and technology services.
We have looked at the company’s past performance in our previous note. In this note, we will undertake a peer comparison.


Aequitas:  NSE Pre-IPO - Peer Comparison

Mid-Small Cap specialist | Equities | India, Nurture Capital Advisory

Nurture Capital Advisory

Mid-Small Cap specialist | Equities | India

Buyside Outfit and Advisory Services

We are a Buyside outfit and also offer Advisory services. Most notes published here are written for our consumption. These notes offer readers a perspective of our approach to scanning sectors and distilling ideas to constructing a bottom-up Equity portfolio. Combining top down and bottom-up approaches to identifying themes/ value stocks at inflexion Sector agnostic | Value oriented - Inflexion approach | Bottom-Up Ideas Biased towards Sustainability, ESG Team is Wall Street Journal, ET Now - Star mine Lipper, Asia money rated.

<ul>
<li>A primer to Life Insurance industry in India - industry size, breaking down key concepts, valuation.</li>
<li>A relatively better consumption theme compared to other expensive names with strong fundamentals, underlying growth and valuations.</li>
<li>However, it's a late cycle play and while downside is protected, upside is capped as well. </li>
</ul>


A primer to Life Insurance industry in India - industry size, breaking down key concepts, valuation.
A relatively better consumption theme compared to other expensive names with strong fundamentals, underlying growth and valuations.
However, it's a late cycle play and while downside is protected, upside is capped as well. 


Life Insurance: Is This Correction Deep Enough to Add?

India

ICICI Prudential Life Insurance Company Ltd. is a prominent Indian life insurance company, a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Limited. The company offers a diverse range of products including life insurance, health, and retirement solutions, as well as term plans, unit-linked insurance plans (ULIPs), and traditional savings plans. Headquartered in Mumbai, Maharashtra, India, the company commenced operations in the fiscal year 2001.

ICICI Prudential Life Insurance (IPRU IN)

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ICICI Prudential Life Insurance (IPRU IN)

Indian Life Insurance Primer - April 2024 Update (FY24)

India Life Insurance Primer April 2024. Recent developments and financial performance of Indian Life Insurers. Long SBI Life and HDFC Life.

Raj S, CA, CFA

India Life Insurers: IRDAI Proposes Higher Surrender Values (SBILIFE IN/ HDFCLIFE IN/ IPRU IN/ LICI)

Indian Life Insurance Regulatory update: Proposed removal of penal surrender charges on traditional guaranteed-return savings products; negatively...

Raj S, CA, CFA

Indian Life Insurance (And Savings) Sector Primer - Long-Term Potential and Strong Operating Margins

Indian Life Insurance companies - SBI Life, HDFC Life , LIC IN , ICICI Pru, MAXF IN - are ripe for long-term secular growth for decades to come as...

Raj S, CA, CFA

Aequitas: NSE Pre-IPO - Peer Comparison

National Stock Exchange (NSEIN IN) is looking to raise upto US$2.5bn in its India IPO. In this note, we undertake a peer comparison.

Sumeet Singh

Life Insurance: Is This Correction Deep Enough to Add?

Stocks in the Life Insurance sector have corrected by 10-20%, but not enough to add yet. While the industry protects downside risks but caps...

Nurture Capital Advisory

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