First-year premium of life insurance companies grew by 7.6% for the period between April and February. Life insurers received premiums of Rs 1.77 lakh against Rs 1.64 lakh crore in a year ago.
First-year premium of life insurance companies grew by 7.6% for the period between April and February. Life insurers received premiums of Rs 1.77 lakh against Rs 1.64 lakh crore in a year ago. Market participants say that the single-digit growth in first-year premiums is likely due to the negative growth in the segments such as individual single premiums and group non-single premiums.
Private players continue to grow faster at 22.31% compared to state-run Life Insurance Corporation of India (LIC), which grew by 1.39% in April to February, showed the data from Insurance Regulatory and Development Authority of India (Irdai). LIC saw first-year premiums at `1.17 lakh crore in the said period against `1.15 lakh crore in the last fiscal. Private players saw first-year premiums at `59,798.76 crore compared to `48,891.40 a year ago.
Data from Irdai showed that premiums for individual single segments stood at `26,900.87 crore in April-February compared to `28,122.27 crore in the previous fiscal — a fall of 4.34%. Even premiums for group non-single category saw a fall of 43.23% in the April-February period.
The life insurance industry posted a 9% growth in its annualised premium equivalent (APE) at `66,389 crore in April-February compared to the same period a year ago. 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. However, for February, life insurers saw first-year premiums at `18,209.50 crore compared to `13,724.96 crore in February last year — a growth of 32.67%.
“Private players reported a 16% y-o-y growth in individual APE in February 2019, higher than the past few months. Growth rate had moderated in April-July 2018 but picked up in later months prior to recording some sluggishness in November 2018 and inching up again. On a YTD basis, the individual APE was up 11% y-o-y,” says the Kotak Institutional Equities report.