In its initiation note, JPMorgan stated that given the sharp decline in their respective stock prices, it has initiated coverage with “overweight” recommendations even on Max Financial’s peers, such as SBI Life, HDFC Life, ICICI Prudential Life Insuance Corp and LIC.
JPMorgan said India’s life insurance sector is turning the corner with GST exemption driving a strong uptick in retail protection.Individual life and health insurance policies in India became officially GST-free from September 22, 2025
. The change eliminated the previous 18% GST levied on most of the individual insurance premiums, reducing costs for policyholders and encouraging wider adoption.JPMorgan also said industry discussion around a rejig of payouts is likely to benefit customers and insurers as long-term customer proposition improves.
Margins of these companies, which are at trough levels, look set to recover as protection sales rise and payout structures normalise.
Commission reform, sustained protection growth, margin recovery and sharp gains by larger insurers are the key catalysts for these stocks going forward, JPMorgan added.
Shares of Max Financial were trading flat at ₹1,733.7 apiece around 12 pm on Wednesday. Meanwhile, shares of SBI Life, ICICI Prudential Life, LIC were down around 1% each.
Also Read: Heatwave Impact: AC makers Blue Star, Voltas, Havells shares surge up to 5%
