Life insurance companies shares trading actively
Published On: Wednesday, May 6, 2020 | By: Team KnowMyStock
Shares of listed life insurance companies were trading actively today, rallying up to 7 percent on the BSE, after SBI Life Insurance reported a good set of numbers for the quarter ended March 2020 (Q4FY20). Analysts believe that the overall insurance penetration in India is likely to rise post-COVID-19 scenario with the individual as well as corporate customers becoming more cautious toward such a crisis. They also remain certain that demand for pure protection tends to rise, with individual customers getting more educated toward the risk that such insurance covers.
SBI Life Insurance gained 5 percent in the intra-day trade today, to hit a high of Rs 750, thereby surging 9 percent in the past two trading days on the BSE. On the other hand, ICICI Prudential Life Insurance (ICICI Pru) jumped 7.5 percent to Rs 403, and HDFC Life Insurance Company was up 4 percent to Rs 498 on the BSE. In comparison, the S&P BSE Sensex was quoting 1 percent higher at 31,766 points at 01:35 pm.
SBI Life reported improvement in Value of New Business (VNB) margins at 18.7 percent (+102bps YoY), with a shift in the product mix toward the non-par business as well as a gradual rise in protection plans.
Analysts expect the trend to improve further, with the rising share of protection plans as well as the elevated share of non-par businesses.
We are on Telegram!
JOIN our telegram channel to receive updates on Financial News and Stock and FNO Tips.
Click Here!
Follow Us On:
