LIC’s first-year premium income rises 35% in H1

Life Insurance Corporation of India (LIC) registered a 35% growth in its new
business premium at Rs 25,814.49 crore during the first six months of the current fiscal compared with an over 14% degrowth seen by the private life insurance companies.
Dragged by the private segment’s decline, overall life insurance industry growth stood at 12.85% during April-September.

Insurance Regulatory & Development Authority (Irda) data shows that LIC registered a higher growth across single-premium and non-single premium plans. Its group plan growth, too, was robust at 64%. The numbers came as a big leg-up for the state-owned life insurer, which saw a huge decline in its first-year  premium income during the last fiscal. LIC’s market share in the first six months of the current fiscal grew to 66% over 55% in same period of the previous year. The market share of private life insurers fell to 34% in H1 over 45%  in the first half of the previous fiscal.

Out of the 21 private life companies, all established players saw their first-year premium income drop. 

Only the relatively newer players registered positive growth during the first half because of their low base. Of these, Bharti  Axa Life and IDBI Fortis posted 32% and 29% growth respectively.  First-year premium income for Bajaj Allianz,  Reliance Life, HDFC Standard Life and ICICI Prudential Life fell by 28.6%,  15.24%, 14.15% and 38.6% respectively. SBI Life garnered the highest first-premium income among private players but showed no growth during the first half.  For Kotak Life, Aviva, Max New York Life and ING Vysya, premium income fell by 8-10%.

The next six months are significant for life insurers as maximum business growth happens during this period.