Budget to impact top line of pvt life insurers

Chennai: Finance Minister Nirmala Sitharaman's Budget proposals have dealt double whammy for the life insurers and it would affect the topline growth of some private players, said Emkay Global Financial Services.

In a research report, Emkay Global's insurance sector analysts Avinash Singh and Mahek Shah said the Rs 5 lakh cap is likely to affect growth of about 10 per cent premium base for HDFC Life Insurance and Max Life and about 5 per cent premium base for SBI Life Insurance and ICICI Prudential Life Insurance.

However, the Section 80C of the Income Tax Act related impact is likely to be slightly higher for SBI Life (among private life insurers).On net, about 15 per cent of overall premium for these players could be under severe growth risk, leading to about 3-4 per cent hit to growth expectations.