Insurance News Details

Life insurers' premium income rose 22% to Rs 32,644 crore in August

(09-Sep-24   16:12)

Life insurance companies have reported a 22% increase in new business premium income, reaching Rs 32,644 crore in August. This marks a significant rise in new business underwriting compared to Rs 26,788 crore collected during the same month last year.

For the first five months of FY25, the new business premium collection rose by 21%, totaling Rs 1,54,194 crore, compared to Rs 1,27,661 crore during the corresponding period last year, according to the monthly data released by the Life Insurance Council.

The total new business premiums surged from Rs 26,788.55 crore in August 2023 to Rs 32,644 crore in August 2024. Year-to-date collections also saw substantial growth, climbing from Rs 1,27,661 crore to Rs 1,54,194 crore this year, according to the council data.

Despite a strong demand for increased insurance coverage from both individual consumers and corporate clients, the issuance of new policies fell by 1.44%, with 23,94,007 policies sold in August 2024, down from 24,28,895 policies in the same period last year.

In August 2024, life insurers added a net total of 1,08,147 individual life insurance agents, resulting in an overall growth of 3.74% in the cumulative agent count compared to the start of FY24-25.

LIC dominates in terms of growth in new business premium (NBP). It has also widened its lead over the private players.

LIC's first-year new business premium rose 35.10% to Rs 19309 crore in August 2024. LIC has done better in August 2024 in terms of NBP growth compared to July and June 2024. The private players saw first year NBP increase by 6.71% in August 2024.

On the growth in the number of policies, private sector insurers outperformed LIC in August 2024, as LIC experienced a decline in policy numbers during that month. In recent months, LIC has redirected its focus towards enhancing new business premiums, and this strategic shift is reflected in both its performance and the stock price of LIC.

For the first 5 months of FY25, private insurance companies new premium income grew by 11.04% and LIC by 27.73%.

Premium income collections of Major Private Companies In August 2024, ICICI Prudential Life saw a growth of 12.32% at Rs. 1509 crore, Max Life Insurance grew by 16.73% to Rs. 956 crore and HDFC Life saw a modest growth of 3.63% at Rs 2797 crores, while SBI Life saw a decline of 13.46% at Rs 2703 crores in August 2024 NBP collections.

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