Indian insurers jump after tax exemption for health, life policies

Sbi Life Insurance

04/09/2025 05:27

** Shares of Indian insurance firms surge after government exempts individual life and health insurance policies from taxes, including for reinsurance

** Niva Bupa NIVA.NS gains the most at 4.5%

** PB Fintech PBFI.NS and Star Health STAU.NS each rise 3%

** CLSA says to protect their profitability and manage this change, insurers will implement price hikes

** Health insurers can absorb change with a modest 3%–4% premium hike, benefiting customers who no longer need to pay the 18% GST, CLSA says

** Adds, life insurers also may need about 1% to 3% price hikes; SBI Life SBIL.NS with the lowest operating expense ratio will need the lowest hike to manage change

** Private life insurers are better placed as exemption is expected to boost term insurance and market-linked products, ICICI Securities says

 (Reporting by Urvi Dugar)

 ((UrviManoj.Dugar@thomsonreuters.com))