Life insurance companies are on our radar as a Kotak report indicates that the tax rate for insurance companies can rise from 14.3 percent to the corporate tax rate, which can impact the embedded value of these companies by 7 to 10 percent.
Throwing more light, Arijit Basu, MD & CEO, SBI Life insurance said the direct tax code is one of the topics being contemplated by the government and they have set u pa committee but as of now there are no proposals. The committee will decide on the framework.
However, according to him with insurance providing social security the tax benefits will continue.
Talking on business per se, he said individual new business premium growth was 35 percent till November, 2017 and the expected growth in individual premium for FY18 is around 40 percent, said Basu.
The company expects to end FY18 on high growth rate.
He said for the first half of the current fiscal the embedded value growth was over 19 percent.
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