BSE LAUNCHES INSURANCE INDEX TO TRACK SECTOR PERFORMANCE

The BSE, through its wholly owned subsidiary Asia Index, has unveiled a new sectoral benchmark, the BSE Insurance Index, offering investors and fund managers a focused tool to track the performance of India`s listed insurance companies.

This index draws its constituents from the BSE 1000 Index, including only those stocks classified under the insurance industry. It uses a free-float adjusted market capitalization weighting method, with a cap of 25% per stock to ensure diversified exposure and prevent concentration risks.

Launched with a base value of 1000, the index is backdated to start from 18 June 2018. It currently comprises 12 insurance companies and is set to be reconstituted semi-annually in June and December, mirroring global best practices in index maintenance.

Some of the top-weighted stocks in the index include HDFC Life Insurance (25.19%) and SBI Life Insurance (23.81%). Other notable constituents are ICICI Lombard General Insurance (13.95%), Max Financial Services (12.44%), ICICI Prudential Life Insurance (7.37%), and LIC (5.30%).

Performance-wise, the index has shown impressive returns. As of 30 June 2025, it has delivered a 1-year total return of 21.92%. The 3-year and 5-year annualized returns stand at 18.05% and 12.68% respectively, while the since-inception annualized return clocks in at 9.37%.

According to BSE, the index is tailor-made for passive investment strategies such as ETFs and Index Funds, and also serves as a robust benchmark for PMS, mutual funds, and actively managed portfolios with exposure to the insurance space.

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