HDFC Life to Max Financial: Here’s how life insurance stocks are delivering smart returns to investors in 2025

Listed life insurance companies have seen strong growth this month. The share prices of HDFC Life, LIC India, ICICI Prudential Life and Max Financial Services have risen by between 5% and 13%.

So far this year, insurance stocks have delivered a handsome return to investors of between 20% and 35%. In the 2025 Union Budget, Finance Minister Nirmala Sitharaman announced that the FDI limit for the insurance sector would be raised from 74% to 100%. This paves the way for global insurance companies to enter the market, as well as substantial foreign investment.

According to experts, foreign investment will provide the insurance sector with much-needed capital, enabling insurers to offer better products and services. Additionally, the new FDI rule could help to increase insurance penetration in the country, which currently stands at around 4%, compared to a global average of 7%.

In its fourth-quarter earnings report, HDFC Life announced a 16% year-on-year (YoY) increase in net profit to ₹477 crore. Meanwhile, SBI Life Insurance reported a flat YoY growth in net profit, reaching ₹814 crore. Meanwhile, Max Financial Services reported a consolidated net profit of ₹38 crore in the March quarter, compared to a net loss of ₹50 crore.

Key stocks on radar

• HDFC Life fresh a all-time and closed at a record high levels last week. The stock broke out of the symmetrical triangle pattern and is currently consolidating at higher levels. The immediate support in the short-term is around ₹713 zone.

• SBI Life also zoomed over 11% after breaking out from the double bottom pattern and is sustaining its positive momentum. After consolidating for last three weeks at higher levels, it is currently trading above the immediate resistance zone of ₹1,797. Meanwhile, the immediate support is around ₹1,681.

Life Insurance Corporation of India (INDIA) rebounded over 12% from the crucial support zone of ₹729 and is currently approaching the crucial resistance zone of ₹908. A close above this zone will signal a continuation of the bullish momentum. However, a rejection from this zone, followed by a negative candlestick pattern, will push the stock back into consolidation.

Technical outlook on HDFC Life, SBI Life and LIC

The strategy involves buying an ATM call and selling a call option two strikes above it. This implies the breakeven point of 787, which is 0.9% higher than Monday’s close. Meanwhile, the bull put spread involves selling the ATM put and buying a put option two strikes below it.

Disclaimer:

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for educational purposes. We do not recommend any particular stock, securities and strategies for trading. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before investing.