HDFC Life, SBI Life, ICICI Prudential hit 52-week lows; what’s spooking investors?

Shares of life insurance companies came under selling pressure on Thursday after industry data showed a sharp slowdown in new business premium growth in May.

HDFC Life Insurance, SBI Life Insurance and ICICI Prudential Life Insurance all touched fresh 52-week lows during intra-day trade on the BSE. HDFC Life fell to Rs 543.05, SBI Life slipped to Rs 1,712 and ICICI Prudential Life declined to Rs 460.40.

The weakness adds to a difficult month for the sector. Over the past one month, ICICI Prudential Life has dropped 18 per cent, while HDFC Life and SBI Life have fallen 12 per cent and 9 per cent, respectively. The BSE Sensex has declined 2.6 per cent during the same period.

Premium growth loses momentum

The pressure on insurance stocks follows a moderation in new business premium (NBP) growth during May.

According to industry data cited by CareEdge Ratings, life insurers reported NBP of Rs 32,030.9 crore in May 2026, up 5.1 per cent from a year earlier. The growth rate was significantly lower than the 12.7 per cent recorded in May 2025 and also below the pace seen in April this year.

CareEdge said the slowdown was mainly due to normalisation in group business and an unfavourable base effect. Growth in the group single-premium segment, which accounts for a large share of industry premiums, slowed to 2.8 per cent year-on-year.

The agency noted that overall industry growth was supported by the individual non-single premium segment, which grew 13.5 per cent. However, part of that increase was driven by higher-ticket policies and a shift towards products carrying larger premium values.

LIC growth eases

The moderation in industry growth was also linked to slower business growth at Life Insurance Corporation of India (LIC).

According to CareEdge, LIC's new business premium growth eased to 3.5 per cent year-on-year in May, weighing on overall industry performance.

Even so, the broader picture remains relatively healthy. For the first two months of FY27, the industry has reported premium growth of 19.4 per cent, suggesting that demand conditions remain supportive despite the softer May numbers.

Private insurers continued to gain ground, with their premiums growing 7.7 per cent year-on-year in May, faster than the overall industry pace.

APE growth also moderates

Annual Premium Equivalent (APE), a key measure used to track insurance sales, also showed signs of slowing.

CareEdge said industry APE growth moderated to 7.5 per cent year-on-year in May. While private insurers recorded APE growth of 14.5 per cent, LIC reported a decline of 2.1 per cent.

On a year-to-date basis, however, industry APE growth remained healthy at 14.6 per cent.

Investors turn cautious

The latest premium numbers have reinforced concerns that growth in the life insurance sector may be normalising after a strong start to FY27.

While analysts continue to see healthy long-term demand for protection and savings products, investors appear to be focusing on the near-term slowdown in business growth, resulting in fresh pressure on insurance stocks.

The market will now look to June and July business updates for signs of whether the moderation seen in May was temporary or the beginning of a broader slowdown across the sector.