Insurance News Details

Life Insurers new premium income up 14.2% to Rs 31,822 crore in July

(13-Aug-24   14:20)

The life insurance sector reported a 14.2% growth in new business premiums, according to the Life Insurance Council data on Monday the life insurance sector earned Rs 31,822.69 crore in July, compared to Rs 27,867.1 crore during same period last year. The primary growth was driven by strong growth in premiums of Life Insurance Corporation (LIC).

According to the latest Council's data, LIC's premium rose 20% Y-o-Y to Rs 18,430.63 crore, while private insurance companies reported a 7% increase in their premiums to Rs 13,392.07 crore. Analysts said high base effects limited the growth of private life insurers.

LIC's individual business segment grew 20.69%, with individual single premiums rising by 24.82% at Rs 4,611 crore and non-single premiums increasing to Rs 9,171 crore in July, group business premium growth in July was driven by a 22.74% increase at Rs 12,838 crore.

Among private sector life insurers, SBI Life Insurance, one of the largest insurer in the segment, saw a 26.3% decline in first-year new business premiums at Rs 2,996 crore, while HDFC Life clocked 33.7% growth at Rs 2,699 crore. Other major players, including ICICI Prudential Life, Bajaj Allianz Life, and Max Life, reported premium growth of 7.36%, 60.5%, and 27.8%, respectively.

New business premiums (NBP) of the Life insurance sector increased by 20.5% to Rs 1.21 trillion during the April-July period. LIC's premium rose nearly 26% to Rs 75,872 crore, while private insurers reported a 12.4% rise to Rs 45,678 crore. Life insurers reported a growth of 8.9% in the number of policies sold during the April-July period compared to last year.

Overall, Driven by strong demand for enhanced insurance protection from individual consumers, new policy issuance too increased to 2.73% on a year-on-year (Y-o-Y) basis in July 2024, the life insurance industry sold 2.4 million policies, compared to 2.3 million in the same month last year. The number of policies issued by LIC in July was 1.627 million, down 1.96% from 1.66 million in the same month last year.

The strong performance can be ascribed to the fact that life insurers are increasingly focusing on encouraging first-time life insurance buyers to purchase essential life insurance solutions, contributing to 20.69% growth in combined individual premium collections for the month of July, and 19% growth on a YTD basis, the Life Insurance Council stated.

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