NLFs Jun‘26 Qtr. Preview: Annuity Plays Better Off vs Volatility Plays

Research evidence excerpt

NLFs Jun‘26 Qtr. Preview: Annuity Plays Better Off vs Volatility Plays

India | Financials EquityJulyResearch8, 2026

KEY STOCKS FEATURED INCLUDE:NLFs Jun'26 Qtr. Preview: Annuity Plays Better

TICKER RATING PRICE TARGETOff vs Volatility Plays

GROWW IN BUY INR230

Jun'26 results should see LIs' APE growing by 13-14%, with Max Life/LIC BSE IN HOLD INR3,440

growing faster. Health insurers to grow by 20-30% y-y with improvement in CDSL IN HOLD INR1,225

CISR, hence u/g PTs of Star and Niva. PB Fintech is supported by health & CAMS IN BUY INR910

term ins. demand, but regulatory overhang remains. AMCs will see profits GODIGIT IN BUY INR395

expand q-q. Groww is better off than BSE/MCX as lower options trading

is offset by MTF pick up. CAMS will see lower yield compression vs KFIN.

Risks remain for CDSL.

KEY CHANGES INCLUDE:

Life insurance: In Jun'26 qtr., we see APE of listed life insurers growing by 13-14% driven TICKER RATING PRICE TARGET

by ULIPs, term insurance and non-par savings. We estimate Axis Max Life and LIC to deliver BSE IN HOLD INR3,440 (INR3,620)

16-17% y-y growth, with the latter benefiting from a low base. For HDFC Life, competition in

CDSL IN HOLD INR1,225 (INR1,150)

HDFC Bank remains a key challenge. We see Axis Max Life and LIC delivering the highest Jun'26

qtr. VNB growth of 14%/26% y-y due to favourable mix shift.

General insurance: Gross premium tailwinds from GST waiver should continue to drive better

growth for health (25%) relative to multi-line insurers (3%) in Jun'26 qtr. We expect Star Health

and Niva Bupa to show a 30-70bps improvement in Jun'26 qtr. IFRS combined ratio due

to lower loss ratio, mix shift and operating efficiencies. Multi-line insurers are facing strong

competition in Fire and Motor categories, limiting growth.