HDFC Life, SBI Life and ICICI Prudential Share Price Gain After Minimal GST Impact; Stock Market Today Update

Market Performance

Insurance stocks opened in the green on Friday, September 5. Shares of HDFC Life, SBI Life, and ICICI Prudential were trading higher in early hours, reflecting investor confidence after the companies projected minimal impact from the latest GST revision.

Around 9:20 am, the stock prices of these insurers were up by nearly 0.8%, signaling positive market sentiment.

Main News: GST Exemption Brings Relief

The 56th GST Council, in its meeting on September 3, announced an exemption of health and life insurance premiums from the Goods and Services Tax.

This decision lowers the overall premium cost for policyholders. However, for insurers, the shift requires adjustments in their systems and may influence their Embedded Value (EV). Each company, though, has clarified that the impact will remain minimal.

Company-wise Details

HDFC Life

• The insurer noted the GST change will likely boost demand.
• Over the next 4–5 years, it expects the value of new business to double.
• On financial impact, HDFC Life said it sees less than 0.5% impact on its EV.

SBI Life

• SBI Life confirmed it will realign its products to match the new tax regime.
• It estimates the GST revision will have an impact of less than 0.2% on its EV.

ICICI Prudential

• ICICI Prudential expects a slightly higher impact compared to peers.
• The company projected about 1% impact on its EV.

Axis Max Life

• Axis Max Life, too, highlighted a minimal impact, estimating it at less than 1% on its EV.

Industry Context

While companies have downplayed the GST effect, industry assessments suggest a broader view. Analysts indicated that the removal of input tax credit could cause up to 1.5% drag on insurers’ embedded value.

That said, most insurers believe the hit is manageable, and the reforms could pave the way for greater insurance penetration over time.

Summary

• HDFC Life share price: Gains as impact is less than 0.5% EV.
• SBI Life share price: Trades higher; sees under 0.2% EV impact.
• ICICI Prudential share price: Notes around 1% impact on EV.
• Axis Max Life: Less than 1% EV hit.
• Market overall: Insurance stocks like HDFC Life, SBI Life, and ICICI Prudential traded higher, with gains up to 0.8% in morning session.