Insurance stocks rally not over yet, says Bernstein; positive on Max Financial, SBI Life

Max Financial, SBI Life, and HDFC Life continue to draw investor interest in the past month

Global brokerage firm Bernstein continues to remain positive on Indian insurance stocks, citing room for further upside due to attractive valuations. The firm identified Max Financial Services as its top pick in the sector and also maintained a positive outlook on SBI Life Insurance and HDFC Life Insurance.

Bernstein noted that Indian life insurance stocks have seen a strong rally over the past year, but they believe there is still more growth ahead. With regulatory concerns easing, the brokerage said that a positive outlook on both growth and margins could serve as key re-rating triggers for the sector.

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Listed life insurance companies have witnessed robust gains over the past month. The share prices of HDFC Life, LIC India, ICICI Prudential Life, and Max Financial Services have risen by up to 21 percent.

So far in calendar year 2025, insurance stocks have delivered strong returns to investors—rising by as much as 33 percent.

In the fourth quarter of FY2025, HDFC Life reported a 16 percent year-on-year increase in net profit, reaching Rs 477 crore. SBI Life Insurance reported flat year-on-year profit growth, posting a net profit of Rs 814 crore. Meanwhile, Max Financial Services reported a consolidated net profit of Rs 38 crore for the March quarter, compared to a net loss of Rs 50 crore during the same period last year.

In the Union Budget for FY2025, Finance Minister Nirmala Sitharaman announced that the foreign direct investment (FDI) limit for the insurance sector would be increased from 74 percent to 100 percent. This move is expected to open doors for more global insurance companies to enter the Indian market and unlock substantial foreign capital.

Experts believe that higher foreign investment will bring in much-needed capital for the insurance sector, helping companies offer improved products and services to policyholders.