Life Insurance | inves4: Indian Equity Investing

Insurance costs under lens: RBI flags high-cost distribution driving premium growth, warns of medium-term pressure

The Reserve Bank of India has flagged emerging structural pressures in the insurance sector, warning that premium growth is increasingly being driven by high-cost, distribution-led strategies rather than improvements in operating efficiency, even as the sector remains stable in the near term, according to its latest Financial Stability Report.“While posing no near-term systemic risks, the … Read more

Govt scraps GST on life, health insurance in move to boost adoption

The GST Council on Wednesday decided to exempt life and health insurance premiums for individuals from Goods and Services Tax (GST). Until now, policyholders were paying an 18% GST on premiums, a levy that had long been a point of contention for the insurance industry. The exemption comes into effect on 22 September. The move … Read more

Allianz may exit from Bajaj insurance JVs

Bajaj Finserv (BFL) in it’s communication to the stock exchanges, has informed of Allianz’s intention to exit. The German Company Allianz SE holds 26% stake in Bajaj Allianz Life Insurance Co. and Bajaj Allianz General Insurance Co, whereas BFL holds the balance 74% in both. Allianz may be planing to exit as Bajaj is not … Read more

Shriram to list insurance arms in the next 2 years

“Maybe a year or two from now. So once we reach a certain scale, we will do it. Maybe general first, then life next,” Shriram Finance’s Executive Vice Chairman Umesh Revankar said. “Both are doing well. They are profit-making from inception. We have not added any capital in both the companies,” he further added. Shriram … Read more

Nitin Gadkari requests withdrawal of GST on life, health insurance premiums

India’s Minister for Road Transport and Highways, Nitin Gadkari, has requested Finance Minister Nirmala Sitharaman to withdraw the Goods and Services Tax (GST) imposed on life insurance and health insurance premiums. Currently, both life insurance and health insurance premiums attract a GST rate of 18 per cent. In a letter to Sitharaman, Gadkari noted that … Read more

Axis to increase stake in Max Life

Max Life (ML) is a subsidiary of Max Financial Services Limited (MFSL). ML is currently 87% owned by MFSL and 13% by the Axis group. In 2021, Axis Bank had announced the deal for the acquisition of a stake in ML The lender then through its entities, had collectively acquired a 12.99% stake in Max … Read more

Max Financial Services

Abrdn completely exits out of HDFC Life

As was expected, Abdrn (formerly Standard Life Aberdeen) has finally sold off it’s balance 1.66% stake of HDFC Life. Pre-IPO in 2017, Standard Life (now Abdrn) held 35% stake in the Company. Adrdn has been monetising its investments in India as part of its plans at the parent level to shore up capital reserves in … Read more

Bagchi takes over from Kannan at ICICI Pru Life

N. S. Kannan, current MD & CEO of ICICI Pru Life, is retiring on the completion of his tenure on June 18, 2023. He is being replaced by Anup Bagchi, an old hand with the ICICI group since 1992. Anup has extensive experience across domains and is currently the Executive Director of the ICICI Bank. … Read more