Insurance stocks zoom after Budget 2025; Star Health, SBI Life gain upto 7%

Insurance shares in focus: Shares of life insurance companies have moved higher by up to 7 per cent on the BSE in Saturday’s intra-day trade after the Finance Minister Nirmala Sitharam proposed a 100 per cent foreign direct investment (FDI) in insurance for firms which invest the entire premium in India.

 

Star Health and Allied Insurance Company, ICICI Prudential Life Insurance Company, SBI Life Insurance, HDFC Life Insurance Company, Max Financial Services, Life Insurance Corporation of India (LIC) and Niva Bupa Health Insurance Company have rallied by up to 7 per cent in intra-day trade. At 12:05 PM; these stocks are trading higher in the range of 1 per cent to 4 per cent, as compared to 0.23 per cent decline in the BSE Sensex.  Stock Market Live 

 

“FDI limit in insurance sector to be raised from 74 per cent to 100 per cent”, said Finance Minister Nirmala Sitharaman on Saturday, February 1, 2025. The change applies to insurers that invest their entire premium in India. The move aims to align with the government's vision of ‘Insurance for All’ by 2047.

 

HDFC Life believes that the life insurance industry is well positioned to address the opportunities in the protection, retirement and long-term savings segments.

 

Life insurance products in India are continually evolving, moving beyond a simple savings tool to providing longer term propositions and an enhanced safety net. As per a Swiss Re study, total insurance premiums in India is expected to grow by 7.1 per cent in real terms over the next five years, well above the global (2.4 per cent), emerging (5.1 per cent) and advanced (1.7 per cent) market averages. A powerful combination of economic growth, a burgeoning middle class, innovative products and supportive regulations is fuelling the Indian insurance market's expansion, HDFC Life said in its FY24 annual report.