4 Insurance Stocks That Emkay Global Has A “Buy” Call On

Broking firm, Emkay Global has placed a "buy" call on 4 insurance stocks in its latest report on the insurance sector. Here are some of the stocks, where the brokerage has a "buy" call on.

Stocks to buy from the insurance sector

Name	Current market price	Target price
HDFC Life	598.95	700
ICICI Prudential Life	466	605
SBI Life	1296	1630
Max Financial	808	920

"The robust distribution channels, launch of innovative products, the diversified product mix and a customer-centric approach have well-poised private life insurance players for benign growth, in spite of the macroeconomic difficulties. Based on the risk-reward proposition, our order of preference is SBI LIFE (Buy), MAX Financias (Buy), HDFC Life (Buy), ICICI Prudential Life (Buy) and LIC (Hold)," the brokerage is said.

Annuity and pension seeing good growth

According to Emkay Global, annuity & pension is growing strongly, amid higher interest rates. "With increasing interest rates, annuity rates have seen material increase in FY23. This seems to be driving the annuity & pension business that has seen 38% YoY growth. This strong growth in annuity & pension has seen its share in the retail APE mix increasing to 11% in Q3FY23 from 9% a year ago," the brokerage has said.

Pricing and growth seen in group protection

According to Emkay Global, pricing and volume drive growth in group protection: Group Protection (GTI and Credit Life) saw strong growth momentum in 9MFY23, led by pricing changes in the post Covid-19 Delta-wave impacted world and volume growth led by stronger credit offtake. However, with the repricing effect moderating, growth too is now moderating, on a high base and largely tracking the sum assured growth. "The Par segment saw a 6% YoY Retail APE growth in Q3FY23 and an 11% YoY growth in 9MFY23, mirroring LIC's growth trend. Notably, about an 8-ppt share loss of par in the retail APE mix over the last 3 years mirrors LIC's ~8ppt market-share loss in retail APE. A volatile equity market meant that ULIP growth remained muted over the last few quarters," the brokerage has said.

Disclaimer

Greynium Information Technologies, the Author and the brokerage house are not liable for any losses caused as a result of decisions based on the article. The above is picked from the brokerage report of Emkay Global. Goodreturns.in advises users to check with certified experts before taking any investment decision.