Listed private life insurers' FY24 margins fell on rise in Ulip share

According to analysts at Motilal Oswal, VNB margins for all life insurance players declined from the previous year due to adverse product mix and pressure on non-par margins

All the four listed private life insurance companies recorded a drop in value of new business (VNB) margin in the financial year 2023-24 (FY24) as compared to FY23. This is because of a higher share of unit-linked insurance plans (Ulips) in the product mix.

VNB is a measure of the economic value of profits expected to emerge from a new business. VNB margin is the profit margin of the companies.

According to insurance companies, the demand for Ulip products has surged among customers due to strong performance of the equity market. The product is considered to have a lower profit margin.

In FY24,