Group premium income from new business of life insurance companies grew by 12.93% year-on-year to Rs 314,263 crore last year from Rs 278,278 crore last year. during the previous financial year, supported by an increase in the group single premium and the group year renewable premium, data from Irdai showed on Monday.
The new corporate premium, or first year premium, of 23 private sector life insurance companies recorded a year-on-year growth of 22.74% to Rs 115,503.12 crore for 2021-2022 , while the IPO-linked LIC recorded a 7.92% year-on-year increase to Rs 198,759.85 crore. Notably, for 2020-21, the life insurance sector’s first-year premium increased by 7.49%.
Due to the Covid-19 pandemic lockdown and resulting impact, premiums were affected in FY21 and the resulting different growth after the same, the base effect may also be possible in the FY22 monthly numbers,” said a note from CareEdge.
LIC continues to maintain its leading share in the FY22 first-year bonus (63.2% LIC share vs. 36.8% private company share). The private sector continued to gain market share as it grew faster than LIC,” CareEdge said in its note.
Among the major private sector insurers, HDFC Standard Life recorded a 20.05% year-on-year increase in new premium to Rs 24,301.07 crore for the last financial year, while for ICICI Prudential Life Insurance it increased from 15.37% to Rs 15,035.52 crore. New business premium income from SBI Life Insurance increased by 23.43% to Rs 25,458.29 crore, Bajaj Allianz Life increased by 44.72% to Rs 9,135.82 crore and Max Life jumped by 15 .78% at Rs 7,904.35 crore.
However, Future Generali saw a 12.64% drop in New Year’s premium to Rs 456.97 crore for the last financial year. Aegon Life was down 73.02% to Rs 16.67 crore, according to data from Irdai.
Life insurers’ first-year premium recorded a robust annual growth rate of 37.30% in March 2022 and reached Rs 59,608.98 crore. “The robust growth in monthly figures can be attributed to an increase in single premiums for the individual and group segments in the last month of the financial year (individuals undertaking tax planning measures), with LIC significantly outpacing its private peers for the second month. in a row,” CareEdge said.