Life Insurers Surge 40% on GST Relief, LIC Leads Charge
Overview
India's life insurance sector saw its strongest monthly growth in December, with new business premiums (NBP) soaring nearly 40% year-on-year. This surge, reaching ₹42,151 crore, was propelled by improved affordability following Goods and Services Tax (GST) rationalization and robust performances from state-owned Life Insurance Corporation of India (LIC) and major private players.
Stocks Mentioned
Life insurers in India posted a powerful performance in December, marking the strongest month of the current financial year with nearly 40% year-on-year growth in new business premiums (NBP).
Robust December Growth
Total first-year premium income jumped 39.5% to ₹42,151 crore, a significant increase from ₹30,219 crore in the same month last year. This strong outturn followed a more than 20% growth recorded in November.
LIC Takes the Lead
State-owned Life Insurance Corporation of India (LIC) spearheaded this expansion, reporting a 57.45% surge in new business premiums to ₹21,294 crore. LIC's group single premium business saw an 80% increase, while individual policy premiums rose 27%.
Private Insurers Contribute
Private life insurers collectively achieved a 25% increase, with premiums totaling ₹20,857 crore. Individual business premiums for private players grew 21%, while group business saw a 36% rise. Among major private entities, SBI Life Insurance reported a 19% increase to ₹6,336.96 crore, HDFC Life Insurance saw a 14.55% rise to ₹3,108 crore, and ICICI Prudential Life Insurance posted a 25% increase to ₹1,945 crore.
Policy Sales Accelerate
Policy issuance also remained buoyant, with life insurers selling 28 lakh policies in December, a 35.44% increase year-on-year. This indicates a growing customer base adopting new life insurance products.
Cumulative Performance
On a cumulative basis for the April-December period, new business premiums rose 13% to ₹3.11 lakh crore. LIC's premiums grew 12.34%, and private insurers reported a 14% increase. Policy sales volume during this nine-month period edged up 1.71%, reversing a contraction seen last year.
