Life Insurance Corporation of India (LIC) saw a 19.78 per cent jump in its new business premium to Rs 18,431 crore from Rs 15,387 crore in July 2023.The premium growth for the private life insurance industry slowed down and grew by 7 per cent, reaching Rs 13,392 crore in July
Mumbai: Life insurers recorded a 14 per cent rise in underwriting new business with a premium collection of Rs 31,823 crore in July.
Life insurance behemoth state owned Life Insurance Corporation of India (LIC) saw a 19.78 per cent jump in its new business premium to Rs 18,431 crore from Rs 15,387 crore in July 2023.
However, the premium growth for the private life insurance industry slowed down and grew by 7 per cent, reaching Rs 13,392 crore in July.
Data from the Life Insurance Council shows that its new business premium collection for the first four months of FY25 rose 26 per cent to Rs 75,872 crore from Rs 60,224 crore in the same period last year.
New business premiums expanded from Rs 27,867 crore in July 2023 to Rs 31,823 crore in July 2024, with year-to-date collections growing even more from Rs 1,00,872 crore to Rs 1,21,549 crore this year, according to the council data.
Driven by strong demand for enhanced insurance protection from individual consumers, new policy issuances too increased by 2.73 per cent on a year-on-year basis in July 2024, resulting in the addition of 23,88,720 new policies vis-a-vis 23,25,235 policies sold in the year-ago period.
Among private players, HDFC Life reported a 34 per cent increase in premiums to Rs 2,699 crore while ICICI Prudential Life Insurance saw a 7 per cent growth to Rs 1,760 crore. SBI Life Insurance, the largest private insurer, experienced a 26 per cent decline in premium collections to Rs 2,996 crore.
SBI Life’s premium decreased by 2 per cent to Rs 10,028 crore for the April-July period. Bajaj Allianz Life Insurance reported a 61 per cent jump in premiums to Rs 1,196 crore, driven by individual non-single premiums and group premiums.
The total number of policies issued by LIC in July saw a marginal decline of 1.96 per cent to 1.627 million, from 1.66 million in the same month last year.
For the first four month of the fiscal 2025 (April-July period), LIC’s new business premium collection rose by 25.98 per cent to Rs 75,871.53 crore, up from Rs 60,223.77 crore in the same period last year.
Data further showed that LIC’s ‘Individual Premium’ segment collected Rs 5,479.57 crore in July, marking a 14.72 per cent increase from Rs 4,776.66 crore in July 2023.
The ‘Group Premium’ segment saw a 22.74 per cent rise to Rs 12,838.14 crore in July 2024, up from Rs 10,460 crore in July 2023.
In the first four months of FY25, LIC’s ‘Individual Premium’ segment generated a total of Rs 17,348.92 crore, reflecting a 14.02 per cent growth from Rs 15,215.84 crore in the same period of fiscal 2024, the data showed.
The ‘Group Premium’ segment experienced significant growth, increasing by 30.09 per cent to Rs 58,230.17 crore, compared to Rs 44,761.82 crore last year.
Moreover, ‘Group Yearly Premiums’ grew by 18.82 per cent, amounting to Rs 292.44 crore in the first four months of fiscal 2025, compared to Rs 246.12 crore in the corresponding period of fiscal 2024.
For the first four months of FY25, the total number of policies and schemes issued by LIC grew by 6.49 per cent to 51.99 lakh, compared to 48.82 lakh in the same period last year, according to the data.