Private Life Insurers Outpace LIC's Revenue Growth In June
Private insurers' revenue growth outpaced that of India's insurance behemoth Life Insurance Corp. in June.
The industry's new business premium stood at Rs 31,254 crore in June 2022, according to provisional data released by the Life Insurance Council. That's an increase of just 3% over a year earlier, while declining 5% over the pre-pandemic month in 2019. And it's despite a 33% year-on-year increase in the total number of policies sold in June.
Group single policy premiums, which contributed to around 65% of the revenue for the month fell 0.7% over a year earlier.
However, revenue jumped 29% over May and the number of policies sold were up 22%.
Key Highlights
LIC's revenue fell 6% over June last year to Rs 20,644 crore. However, it was up 33% over May.
New business premium of private insurers jumped 31% year-on-year to Rs 10,611 crore in June. The year-on-year growth was supported by strong growth across retail and group segments, except the group yearly renewable category. Revenue was up 23% sequentially.
Private insurers reported a 64% growth in group single premiums, which usually contribute to a major portion of life insurers' revenues, while LIC reported a 10% year-on-year decline in this category.
How India's listed private insurers fared in June 2022:
HDFC Life Insurance Co.
Revenue rose 10.3% year-on-year. It was also up 24% from the previous month at Rs 1,875 crore in June.
New business premium grew 28% year-on-year while declining 33% sequentially to Rs 4,851 crore in the quarter ended June.
SBI Life Insurance Co.
New business premium rose 62% year-on-year to Rs 2,826 crore in June. In comparison to May, the premium doubled.
New business premium declined 15% sequentially, while they surged 64% year-on-year to Rs 5,591 crore in the quarter ended June.
The company reported the highest revenue among private peers.
ICICI Prudential Life Insurance Co.
New business premium stood at Rs 1,080 crore in June, reporting a decline of 15% both year-on-year and over the previous month.
Revenue rose 31% over the year earlier, but fell 34% sequentially to Rs 3,184 crore in the quarter ended June.
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