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Podcast: Let the Money Talk
Episode: India: Life Insurance Sector Update | Rising rates do not alter the structural growth story
Description: Life insurance stocks have underperformed the Nifty index in the last six months, largely due to concerns related to rising interest rates and moderating ‘individual protection’ growth, along with expectation of lower non-PAR (non-participating insurance) sales in a rising rate scenario. While some of these concerns may be valid, we believe their impact will be largely limited. We remain positive on the sector and expect VNB (value of new business) growth to remain robust (16%-19% 2yr CAGR) and margins to continue improving over the medium term. SBILIFE and HDFC Life remain our preferred picks in the space. Â
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