New business premium for the life insurance industry witnessed a 28.69% year-on-year fall to Rs. 27,867.10 crore for July due to a 47.16% decline in premium income for state-run LIC.
Collective new business premium or the first-year premium of 25 private sector life insurance companies grew 25.28% YoY to Rs 12,480.53 crore, according to data released by insurance regulator Irdai.
However, during the period under review, Life Insurance Corporation of India’s new business premium fell to Rs. 15,386.57 crore from Rs. 29,116.68 crore in July 2022, as income from the group single premium and group non-single premium categories declined substantially.
Interestingly, LIC posted around 21% y-o-y growth in its new business premium for June to Rs. 24,970.82 crore. The insurance behemoth registered decline in its premium incomes for April and May.
For the first four months of this financial year, LIC’s new business premium fell 22.11% YoY to Rs. 60,223.77 crore. As a result, the industry’s collective new business premium for the April-July period witnessed a de-growth of 10.54% to Rs. 1 trillion from Rs. 1.13 trillion in the year-ago period.
Among major life insurers in the private sector, SBI Life Insurance, ICICI Prudential Life, HDFC Life, Max Life and Tata AIA life witnessed premium growth of 75%, 21.93%, 4.5%, 24.43% and 24.47% to Rs. 4,067.39 crore, Rs. 1,639.36 crore, Rs. 2,017.72 crore, Rs. 725.79 crore and Rs. 642.32 crore, respectively, in July.