life insurance


SBI Life Insurance Company stocks: Buy SBI Life Insurance Company, target price Rs 1350: ICICI Direct

  • May 23, 2023
ICICI Direct has buy call on SBI Life Insurance Company with a target price of Rs 1350. The current market price of SBI Life Insurance Company is Rs 1136.85.

SBI Life Insurance Company, incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 113806.74 Crore) operating in Financial Services sector.

SBI Life Insurance Company key Products/Revenue Segments include Premiums Earned and Other Operating Revenue for the year ending 31-Mar-2022.


For the quarter ended 31-03-2023, the company has reported a Standalone Total Income of Rs 21310.74 Crore, down -20.57 % from last quarter Total Income of Rs 26829.77 Crore and down -1.64 % from last year same quarter Total Income of Rs 21666.15 Crore. Company has reported net profit after tax of Rs 776.85 Crore in latest quarter.

The company’s top management includes Mr.Dinesh Kumar Khara, Mr.Mahesh Kumar Sharma, Ms.Usha Sangwan, Dr.Tejendra Mohan Bhasin, Mr.Narayan K Seshadri, Mr.Deepak Amin, Mr.Shobinder Duggal, Mr.Ashwini Kumar Tewari. Company has S C Bapna & Associates as its auditors. As on 31-03-2023, the company has a total of 100 Crore shares outstanding.

Investment Rationale

SBIL’s share price has grown ~45% in the past three years. Lower proportion of high ticket business, strong distribution and diversified product mix along with lowest cost on relative basis is seen aiding business growth as well VNB margin. The stock is reasonably priced and is currently trading at 1.9xFY25E embedded value.

Promoter/FII Holdings
Promoters held 55.45 per cent stake in the company as of 31-Mar-2023, while FIIs owned 25.14 per cent, DIIs 15.09 per cent.

(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, … Read the rest


Pandemic left lasting appreciation for mortality, life insurance in young people, LIMRA/Life Happens poll shows – Insurance News

  • May 22, 2023

The memory of the dark, scary days of the COVID-19 pandemic might be fading but the lessons are apparently imprinted on younger generations, especially single mothers, who have an appreciation for mortality and life insurance, according to the latest LIMRA/Life Happens Insurance Barometer.

Although a record-high percentage of consumers (39%) say they intend to buy life insurance in the next year, younger people are driving the demand with 50% of millennial and 44% of Gen Z respondents wanting coverage, according to the survey, which is being released on opening day of the Life Insurance & Annuity Conference in Salt Lake City.

Alison Salka, head of LIMRA research, said the 10th annual survey showed a growing pool of younger people wanting life insurance.

“Younger generations, the millennials and Gen Z, are really starting to see the need,” Salka said. “It really presents an opportunity for the industry. … The majority of Gen Z is interested in life insurance. Only 40% of Gen Z told us that they own life insurance and about half of them report a need gap.”

The pandemic is likely to have instilled that awareness of mortality and the need for life insurance in younger people because it was a defining moment in their development.

“You have these younger people who are coming of age after or during a pandemic, during a volatile, interesting labor market,” Salka said. “It’s really heartening to see that so many of them recognize life insurance as a piece of their overall financial puzzle.”

Millennials are most concerned about burial and final expenses, with that being cited as a major reason by 52% of millennials, while only 35% of Gen Z cited it. The second largest reason for millennials is that their employer gave it to them.

Millennials were

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Vietnam remains important life insurance market in Asia

  • May 21, 2023

HANOI (Xinhua): Vietnam remains a key life insurance market in Asia with nearly 14 million life insurance contracts as of the end of 2022, according to the Insurance Association of Vietnam.

The number of life insurance contracts in the country in 2022 increased by 5 per cent year on year and premiums rose by 12 per cent to over 178 trillion Vietnamese dong (US$7.6 billion), local newspaper Vietnam News reported on Wednesday (April 26), citing the association.

Of the contracts, 995,000 were through bancassurance, which accounted for 46 per cent of the premiums. Life insurance claims last year topped 44 trillion Vietnamese dongs ($1.9 billion), a 34 per cent increase, according to the association.

The life insurance market in Vietnam has 730,000 agents, according to Ngo Trung Dung, the association’s deputy general secretary.

Recently, insurance companies in Vietnam have been required to tighten the supervision of agencies and sales amid negative feedback from the public over poor transparency of insurance products.

The country’s Insurance Supervisory Authority demanded insurance agencies immediately take measures to provide clients with complete and accurate information and review the quality of their agents’ consultation and sales techniques, Vietnam News reported.

Dung said the association would work closely with insurers to provide veracious information to customers and improve the latter’s service quality, including enhancing agents’ training and consulting, sales and appraisal processes.

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Excellent credit ratings for Aspida Life Re – The Royal Gazette

  • May 18, 2023

Created: May 02, 2023 07:07 AM

AM Best reports that Aspida Life Re, at Victoria Place in Hamilton, has a very strong balance sheet.

AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Bermudian-based Aspida Life Re Ltd and Aspida Life Insurance Company of North Carolina.

The outlook of these credit ratings is stable.

The ratings reflect Aspida Re’s and Aspida Life’s balance sheet strength, which AM Best assesses as very strong, as well as their adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings of Aspida Re and Aspida Life consider the strength of their balance sheets and overall liquidity sources, which have been bolstered by significant capital contributions from Ares Management Corporation, a publicly traded, leading global alternative investment management firm with over $350 billion of assets under management as of December. 31, 2022.

AM Best expects additional capital contributions from Ares and other third-party investors to fund the current growth strategy of continued writing of retail annuity business at Aspida Life and acquiring new blocks of business and entering new reinsurance flow deals through Aspida Re.

Aspida Re currently maintains the strongest level of risk-adjusted capitalisation, as measured by Best’s capital adequacy model, while Aspida Life’s BCAR scores are above the level required for an assessment of very strong.

Aspida Re has expanded its business profile over the past year with several new block acquisitions and reinsurance flow deals, including one with a prominent Japanese life insurance company.

While GAAP accounting rules have resulted in significant volatility in reported earnings, the underlying profitability of Aspida Re’s blocks of business have generally been favourable and interest rate spreads have improved with the rise in investment yields and the repositioning of investments

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How Aegon Life Insurance is leveraging digital for business transformation, ET CIO

  • May 15, 2023

Today’s digital landscape has drastically changed the pace of business and information flow, with customers seeking innovative ways to connect and employees expecting flexibility and empowerment to meet new demands. To keep up, banking, financial services, and insurance institutions require a new type of agility and efficiency, particularly when it comes to customer experience. However, it’s crucial to recognize that digitization should not come at the expense of security, as increased digital interaction can bring about risks such as cyberattacks and security incidents. Hence, companies must ensure seamless collaboration and operation of systems, regardless of data, applications, or local and global business communities. Let’s find out how an insurance major is leveraging digital for business transformation.

Aegon Life Insurance, a digital life insurance company, has revolutionized its operations with a new digital platform, delivering a seamless and straight-through experience for purchasing policies. With a visionary ‘Pure Digital 2.0’ strategy, the insurance firm is pioneering an AI-driven approach to financially secure every Indian household. But it’s not just about convenience and efficiency – this strategy is also firmly rooted in the principles of security and privacy.

The company realized that in its journey of digital transformation, building digital trust among customers and partners has become paramount. To achieve this objective and ensure unbeatable data security, the company has a hybrid infrastructure with a multi-cloud environment. State-of-the-art cloud-native solutions like SOCaaS, DLP, PAM, EDR, cloud posture management and workload protection have been deployed to ensure security and reliability. These solutions have helped with better visibility and governance of infrastructure for proactive risk detection and mitigation. The organization also has DevSecOps with an automated CI/CD pipeline for secure development.

Benchmarking to global standards and thus assuring the security of customer information, Aegon Life has also achieved ISO 27001 certification for its

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Cathay Life Insurance nabs fifth Celent Model Insurer award

  • May 14, 2023

Cathay Life Insurance nabs fifth Celent Model Insurer award | Insurance Business Canada

Applications were received from 170 financial institutions across 50 countries

Cathay Life Insurance nabs fifth Celent Model Insurer award

Insurance News


Cathay Life Insurance has been awarded its fifth Model Insurer Award by global consulting and research company Celent.

The award recognizes insurance companies, reinsurers, and MGAs that have demonstrated exceptional results in technology usage across various critical areas in insurance.

Cathay Life stood out from 260 submissions from 170 financial institutions in over 50 countries, claiming the prize in the category of Data, Analytics, and AI for its Cathay Eye Intelligent Risk Control Model.

The Cathay Eye Intelligent Risk Control Model offers a new risk classification method for the life insurance industry, allowing for the expansion of application to other areas such as personal health risks.

By leveraging substantial amounts of data, Cathay Life simplifies the processes of marketing, underwriting, product design, and more. The new model is one of the few in the global insurance industry that can control and manage multi-faceted risks, providing customers with a better insurance experience.

“We hope to use data analysis and new technologies to provide customers with a new insurance experience. Cathay Eye allows us to view Taiwan’s insurance industry in a more innovative way, which is also a catalyst for change,” said Sun Zhide, senior vice president of Cathay Life Insurance.

The multi-disciplinary approach of using risk models to solve business challenges, demonstrating innovative applications in the insurance value chain, and showcasing the commercial value of AI models in the insurance industry were some of the winning aspects considered by the awards panel.

“The Model Insurer Award aims to commend insurance companies for using technology to change the face of the

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How to Increase Life Insurance Sales in a Battered Market

  • May 12, 2023

What You Need to Know

  • The life insurance shopping process takes many consumers three or more months.
  • For a few weeks, consumers want to hear from you and insurers about life insurance.
  • Which consumers? And which weeks?

Life insurance demand fell precipitously between February 2021 and the end of 2022.

Activity levels have started to recover, a little, but, at Verisk, we saw 17 straight months of negative year-over-year growth in life insurance. The industry charted less application activity as a result.

A line chart that shows life application activity rising sharply from about January 2020 through October 2021, than falling back to baseline levels. (Image: Verisk)

Why did that drop in activity occur, and what can life insurance providers do to generate applications during slow periods?

Consumers have been facing sustained inflation and tightened budgets. The theory is that they are simply less interested in life insurance, and distracted by more immediate financial priorities.

Life insurance is a discretionary instrument; even in stable times, only 52% of Americans have any life insurance, and 106 million adults (about 41% of the U.S. adult population) do not believe they have adequate life insurance coverage.

Amidst the recent economic turbulence, even motivated life insurance shoppers have been letting existing policies lapse, or taking longer to buy new coverage.

You, the distributors and the insurers that write the coverage, have to work harder to reach new customers and retain current policyholders.

The Solution

Where there is risk, there is opportunity.

Savvy distributors are taking this time to build their capabilities, generate interest in a quiet market, and establish differentiated relationships with customers, powered by personalization.

While this may sound like a difficult strategy to implement, it’s more than feasible with the right tools.

Here are four steps to take to create demand in a down market.

1. Know who you want to sell to.

Not every consumer need is equal, and not every buying journey

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ITR filing: What income tax rule says on premium paid for life insurance policy of a house wife

  • May 11, 2023

My wife and me have life insurance policies of 25 lakh each. My wife does not have any income. Can I claim deduction u/s 80C in respect of the premium paid for her?.

Premiums paid by an individual for life cover taken for self, spouse, and children are eligible for the deduction u/s 80C. As far as payment of premium for children is concerned it is not necessary that the children should be dependent on you. So the child for which you can pay the life insurance premium can be major or minor, married or unmarried. This can be used to optimise the tax outgo in the family as the earning children have so many eligible items like school fee and repayment of home loan under Section 80 C that in most of the cases these items overflow their bucket of section 80 C whereas the parents specially the retired do not have many avenues to claim deduction under Section 80C. So they can pay the life insurance premium on the life of their earning children which otherwise would have not been eligible for deduction in their hands. Please note the children can not claim deduction for payment of life insurance on the policies of their parents but can claim deduction under Section 80D for payment of health insurance premium even if the parents are not dependent on the child.

Let me tell you the purpose of buying life insurance is to protect the dependent family members in the eventuality of earning family member’s death and should never be bought for the purpose of saving taxes. Since your wife does not have any income, you should not have bought any life insurance policy on her life and it would make more financial sense for you to have taken

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