Life insurance companies have reported 14 per cent year-on-year (Y-o-Y) growth in new business premiums (NBP) in September, aided by healthy growth in premiums of state-owned Life Insurance Corporation of India (LIC) and its private counterparts.
According to data released by the Life Insurance Council, the NBP of life insurance companies totalled Rs 35,020 crore in September. LIC’s NBP grew by 12.4 per cent Y-o-Y to Rs 20,369.26 crore, while private insurers cumulatively posted 16.37 per cent Y-o-Y growth in NBP to Rs 14,651.02 crore.
Click here to connect with us on WhatsApp
The individual single premiums of the industry grew by nearly 13 per cent Y-o-Y to Rs 5,142 crore, while individual non-single premiums grew by 35.23 per cent to Rs 11,500 crore.
Among major listed private insurers, SBI Life Insurance’s premium grew by 4.6 per cent Y-o-Y, while HDFC Life Insurance posted nearly 9 per cent Y-o-Y growth, and ICICI Prudential Life Insurance recorded 20.6 per cent Y-o-Y growth.
“The private life insurers have recorded a slowdown in individual single premiums for September. It is lower than last year. Although non-single and group segment premiums have increased, overall growth has slowed down for the private players,” said Saurabh Bhalerao, head of BFSI research, CareEdge Ratings.
In the April-September period of FY25 (H1 FY25), life insurers posted nearly 19.5 per cent Y-o-Y growth in premiums to Rs 1.89 trillion. During this time, LIC’s premium rose by 24.7 per cent Y-o-Y to Rs 1.15 trillion, while private insurers recorded a 12 per cent rise in premium to Rs 73,664 crore.
LIC’s NBP was driven mostly by group single premiums, where it is the market leader, with nearly 80 per cent market share. LIC’s group single premiums grew by 28.9 per cent to Rs 83,110 crore in H1 FY25.
As of H1 FY25, LIC’s market share stood at 61.07 per cent compared to 58.50 per cent a year ago. The share of private insurance companies accounted for 38.9 per cent of the NBP, compared to 41.5 per cent last year.
First Published: Oct 11 2024 | 5:18 PM IST
