It is expected that the prevailing interest rate situation is favourable for the profitability and growth of life insurers. The current interest rate rise is expected to improve the value of new business (VNB) margins of both participating (par) and non-participating (non-par) insurance products. Participating plans provide guaranteed and non-guaranteed benefits, while non-par plans typically provide guaranteed benefits.
Largecaps showing no fundamental change despite market bounce: Nischal Maheshwari
Market expert Nischal Maheshwari advises investors to focus on fundamentals amidst market volatility. He notes large-cap growth remains single-digit, banks are poised for margin improvement,