Indian insurers drop on report of likely curb on parent bank dependence

Sbi Life Insurance

12/12/2024 09:06

** HDFC Life  HDFL.NS , SBI Life Insurance  SBIL.NS  fall
about 2%; Max Financial  MAXI.NS  down 1.4%
    ** India's insurance regulator may look to limit an
insurer's over-dependence on its parent bank, CNBC-TV18 reports
    ** CNBC-TV18 had earlier reported the regulator may consider
50% cap on parent banks' share to insurers' total bancassurance
business, which, brokerages said, could slow industry's growth
    ** SBIL, HDFL, Max Life derive 50%-70% of annual premium
equivalent (APE) from bancassurance
    ** On Nov. 18, India's finance minister raised concerns
about instances of banks mis-selling insurance products
    ** Since then, SBIL, HDFL, MAXI have fallen 7%-9.5%, while
the Nifty Financial Services  .NIFTYFIN  index has gained 6.4%

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))