Indian insurers extend fall on proposal of policy maturity tax

Max Financial Services

02/02/2023 05:29

** Shares of insurers HDFC Life  HDFL.NS  and Max Financial
 MAXI.NS  down ~4%, while LIC  LIFI.NS  down ~1%
    ** Indian budget proposed taxing total returns upon maturity
of life insurance policies if aggregate premium of such policies
tops 500,000 rupees ($6,111) a year
    ** This is applicable for policies issued on or after April
1 and won't affect tax exemption on payment on death of insured
    ** Macquarie estimates ~10% of HDFC Life's annual premium
equivalent (APE) could be affected as 40% of its APE is from
high ticket policies
    ** Estimates minimal impact on SBI Life, with 1% of APE
affected; SBIL is up as much as 2.6%
    ** Over past two session, HDFC has lost nearly 15%, MAXI
~14%, LIC ~9% and SBI ~8%
 
 
 
 ($1 = 81.8150 Indian rupees)
 (Reporting by Ashna Teresa Britto in Bengaluru)
 ((AshnaTeresa.Britto@thomsonreuters.com ; ( +91 8078332441))