Result preview: High Ulip share may weigh on life insurers' Q2 margins

High share of low-margin unit-linked products (Ulips) and increased investments in distribution channels are likely to weigh on listed life insurance companies’ margins in the September 2024 (Q2FY25) quarter, said analysts.

The guidance by these listed insurers on sales and margin for non-linked savings products will be keenly watched by investors. This comes as the revised surrender value norms were implemented by the insurers starting October 1, analysts said.

Industry players had previously indicated that their margins will take a hit because of the revised norms.

“Aggregate value of new business (VNB) margins is likely to decline