Life insurance industry registers strong growth in November

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Published: December 11, 2019 3:06:52 AM

Individual annualised premium equivalent (APE) increased 27% y-o-y in November for private players, bucking the 2-4% y-o-y growth trend of the past two months, suggest data from Kotak Institutional Equities.

Life insurance, industry, growth, Kotak Institutional Equities, Bajaj Allianz, HDFC Life, SBI Life, Max Life, Tata AIA, APE growthPlayers like Bajaj Allianz, HDFC Life, SBI Life, Max Life, Tata AIA continued to see its APE growth in positive territory in the current financial year.

Indian life insurance industry registered strong growth in November, led by positive performance across all categories. Insurance industry saw new business premiums at Rs 26,221.24 crore compared to Rs 14,857.76 crore – a growth of 76.48% – data from Life Insurance Council show.

Individual annualised premium equivalent (APE) increased 27% y-o-y in November for private players, bucking the 2-4% y-o-y growth trend of the past two months, suggest data from Kotak Institutional Equities.

The data from Life Insurance Council show that categories such as individual single premiums, individual non-single premiums, group single premiums and group non-single premium saw positive growth in November.

“Almost all players reported strong performance, partially aided by a low base. LIC almost doubled its premium, a change from muted performance in recent months. Among large players, HDFC bounced back after a decline in October and ICICI Life reported a second consecutive month of high-teen growth. SBI crossed 20% growth after three months,” said a report of Kotak Institutional Equities.

In April-November period, life insurance industry saw new business premiums at Rs 1.69 lakh crore compared to Rs 1.23 lakh crore in the previous financial year – a growth of 37.22%, data from Life Insurance Council show.

Insurance industry and Life insurance Corporation of India (LIC) witnessed APE at 67% and 110%, respectively, for November. APE is the sum of annualised first year premiums on regular premium policies, and 10% of single premiums, written by insurance companies during any period from both retail and group policyholders.

“LIC almost doubled its individual APE in November after 6% growth in October and a decline in September. LIC agents seem to have pushed their pedals hard since it was the sunset month for some of LIC’s popular products namely Jeevan Lakshya, Jeevan Umang and Jeevan Labh (all three par products). These products are being re-priced. We would expect weakness in its growth hereon,” said the Kotak Institutional Equities report.

Players like Bajaj Allianz, HDFC Life, SBI Life, Max Life, Tata AIA continued to see its APE growth in positive territory in the current financial year.

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