How has the decision to scrap GST impacted the insurance sector stocks? The brokerage firm, Nuvama highlighted both the challenges in the near-term and opportunities for long-term investors. According to the brokerage report, growth in August 2025 was subdued., This was largely because buyers postponed decisions in anticipation of a possible GST rate cut.
According to Nuvama, private insurers have comparatively gained more ground so far in FY26. As per the brokerage report, Axis Max Life and HDFC Life recorded the strongest gains in market share amongst the private players,
Let’s take a look at Nuvama’s top picks from the lists of financial sector stocks and key insurance players –
Nuvama’s top picks in insurance sector
Among its top recommendations, Nuvama has given a ‘Buy’ rating on-
- HDFC Life: Target price of Rs 920, implying 18% upside from the current market price
- SBI Life: Target price of Rs 2,250, implying nearly 30% upside from the current market price
The brokerage house believes these two insurers are best placed to withstand short-term headwinds while continuing to expand market share.
According to the brokerage report, the removal of GST exemption on individual business is a key sectoral development. While this move is expected to support demand in the long run, insurers will have to adjust pricing and processes in the short term. Moreover, investors also need to decide whether to absorb or pass on margin pressures.
“Margins are expected to face pressure, with SBI Life likely the least affected,” said the brokerage in its report.
Nuvama on insurance sector stocks: Performance snapshot of top performers
HDFC Life: Stable growth with strong long-term record
Nuvama has retained its ‘Buy’ rating on HDFC Life with a target price of Rs 920, citing steady growth and strong fundamentals. For FY26 so far, its individual APE market share has risen by 74 basis points to 12.1%.
ICICI Prudential Life: Weak show in August
Nuvama continues to maintain a ‘Buy’ call on ICICI Prudential Life with a target price of Rs 770, despite weak numbers in August 2025. The insurer saw individual APE fall 14.7% year-on-year, which dragged total APE down 9.4%, even as group APE rose 12.9%. Market share for FY26 so far slipped 107 basis points to 6.1%.
Axis Max Life: Outperforming peers
For Max Financial Services (Axis Max Life), Nuvama has reiterated a ‘Buy’ rating with a target price of Rs 1,870, as the insurer continues to outperform peers. Total APE jumped 17% year-on-year in August, driven by a 15.9% rise in individual APE. Its market share improved 85 basis points to 7% in FY26 so far, supported by a four-year individual APE CAGR of 16.5%, added the brokerage report.
SBI Life: Margins steady, market share intact
Nuvama has reaffirmed its ‘Buy’ rating on SBI Life with a target price of Rs 2,250, positioning it as one of the top sector picks. The insurer reported a 4.1% drop in individual APE in August, but its FY26-to-date market share edged up to 15.9%. The brokerage noted, “SBILIFE is trading at FY26E/27E P/EV of 2.2x/1.9x; maintain ‘Buy’ with a target price of Rs 2,250.”
Bajaj Life and LIC: Still lagging
Nuvama remains cautious on Bajaj Life and LIC, given their underperformance compared with private peers.
Bajaj Life’s individual APE slipped 5.6% year-on-year in August, while LIC posted a 5.1% fall.