The data from Irdai show private players saw new business premiums at Rs 4,917.34 crore in May, against Rs 3,633.36 crore in the year-ago period, a growth of 35.34%.
New business premiums for life insurance companies grew 43.43% to Rs 18,414.02 crore in May, with state-run Life Insurance Corporation of India (LIC) growing at a faster pace than private insurers, showed data from the Insurance Regulatory and Development Authority of India (Irdai). Market participants attribute this growth largely to a surge in group business.
The data from Irdai show private players saw new business premiums at Rs 4,917.34 crore in May, against Rs 3,633.36 crore in the year-ago period, a growth of 35.34%. New business premiums of LIC stood at Rs 13,496.68 crore in May, compared with Rs 9,204.88 crore, a surge of 46.63%.
The life insurance industry posted a 21% growth in its annualised premium equivalent (APE) at Rs 5,558 crore during the month under review over the same month a year ago. While private players witnessed a 28% growth, LIC achieved a lower growth at 15%, showed data from Kotak Institutional Equities.
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. “May 2019 was a strong month for most of the private sector players with 27% y-o-y growth in overall APE (26% y-o-y in April 2019). Excluding ICICI Prudential Life (overall APE up 4%), other large players reported 25-55% growth. A low base and focus on ULIPs, coupled with moderate appetite for equity investments, were the likely reasons,” says a Kotak Institutional Equities report. In May this year, players like Bajaj Allianz Insurance, SBI Life, Tata AIA and HDFC Life continued to see positive APE growth. “HDFC Life reported strong increase in individual APE for a second straight month at 59% y-o-y in May 2019 (31% in April 2019) after witnessing a muted growth from November 2018 to March 2019…” the report said.