New Delhi, Aug. 20 -- India's insurance sector could see a stronger year ahead as life insurers post robust growth and health insurers benefit from improved new business and lower claims, even as insurance stocks have remained under pressure, according to a report by Kotak Institutional Equities.

The report noted that private insurance stocks have underperformed by 7-15 per cent over the past three months, but said the weak market performance does not reflect the improvement in their underlying business.

Life insurers recorded 8-36 per cent growth in annualised premium equivalent (APE) in the first quarter of FY27, while margins improved by around 200-300 basis points for several players. Kotak said growth was particularly supported by ...