Life insurers' June premium rises 13% on strong private sector growth

Life insurers' new business premium rose 13.07 per cent in June, as strong growth by private insurers offset modest gains at LIC and lifted the industry's overall performance

Life insurers reported a 13.07 per cent year-on-year (Y-o-Y) increase in new business premium (NBP) to ₹46,490.53 crore in June, driven by robust growth among private insurers, which more than offset muted growth at the state-owned Life Insurance Corporation of India (LIC).

 

The industry's performance marks a sharp improvement from the 5 per cent growth recorded in May.

 

According to data released by the Life Insurance Council, LIC reported a 1.2 per cent increase in NBP to ₹27,724.62 crore during the month, while private insurers posted a 36.75 per cent jump to ₹18,765.9 crore.

 

LIC's group business declined 1.4 per cent to ₹21,771.62 crore, although its individual business grew 12.05 per cent to ₹5,953 crore. In comparison, private insurers reported a 13.32 per cent increase in individual business to ₹9,527.9 crore, while group business surged 73.8 per cent to ₹9,237 crore.

 

Overall for the industry, the individual business segment grew 12.8 per cent Y-o-Y to ₹15,480.96 crore in June, led by private insurers, while group business rose 13.18 per cent to ₹31,009.6 crore.

 

Among private players, SBI Life Insurance reported a 21.97 per cent rise in NBP to ₹3,196.11 crore. HDFC Life Insurance posted a 31.73 per cent increase to ₹3,324.01 crore, while ICICI Prudential Life Insurance recorded a 25.07 per cent growth to ₹1,967.25 crore.

 

Bajaj Allianz Life Insurance was the fastest-growing among the large private insurers, with NBP rising 76.6 per cent to ₹1,503.87 crore. Axis Max Life Insurance reported a 21.09 per cent increase to ₹1,503.87 crore.

 

During the April-June quarter of FY27, the industry's NBP rose 16.6 per cent Y-o-Y to ₹1.09 trillion. LIC reported a 10.33 per cent increase to ₹65,548.9 crore, while private insurers recorded a 27.51 per cent rise to ₹43,522.87 crore.

 

Life insurers sold 5.11 million policies during the first quarter of FY27, up 5.97 per cent from a year earlier. LIC sold 3.11 million policies during the period, while private insurers sold 2.01 million policies.