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Shares of life insurance companies rise due to surrender charge talks

Mumbai: In a meeting with regulator This week, the chief executive officer of life insurance companies made representations on the proposed boundary surrender charge, The regulator is understood to have assured them that their views will be considered while formulating the final guidelines.
shares Life insurance companies have seen significant activity in the last two days. Industry sources attribute this to this possibility proposed rules The charges of surrender are being weakened. Analysts believe that setting a cap on surrender charges will affect the profits of these companies.
In the last two days, HDFC Life gained 7.5%, ICICI Pru Life and LIC gained more than 5% and SBI Life gained 4%. While surrender charges are intended to defray insurers’ upfront costs and discourage policyholders from exiting early, the flip side is that customers who have been mis-sold stand to lose if they decide to abandon policies early. Share prices also rose on hopes of better growth in January 2024.
Among listed life insurers, LIC recorded premium of Rs 18,920 crore as on January 24 – a growth of 23.6% compared to January 2023. SBI Life’s January premium stood at Rs 5,218 crore, more than double the premium of Rs 2,572 crore in the year-ago period. HDFC Life’s gross premiums rose 2% to Rs 2,400 crore in January, while ICICI Prudential grew 8% year-on-year to Rs 1,564 crore as of January 24.

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