Life insurers' NBP set to expand 14% in FY22 on higher growth in H2: Icra

The rating agency expects the private players' profitability to remain subdued in FY22 due to high claims in Q1

While the life insurance industry has seen muted growth of 4 per cent in new business premiums (NBP) so far, it is expected to close the financial year (FY22) with 14 per cent growth in NBP, backed a pick-up in business in the second half of the fiscal, rating agency Icra said.

“The NBP is estimated to grow 14 per cent in FY22 to Rs 3.18 trillion, as the nominal gross domestic product (GDP) is projected to grow by 16 per cent. We expect the NBP growth to accelerate in H2, as typically Q4 has always been the strongest quarter