India's non-life insurers witnessed a decline in revenue over the preceding month in April amid the localised curbs introduced to fight the second wave of Covid-19 pandemic.
Gross premium underwritten or revenue of non-life insurers contracted 10.31% month-on-month to Rs 17,309.54 crore, according to data released by the Insurance Regulatory Authority of India. On a yearly basis, the metric rose 22.12%, led by a low base as the country was under a total lockdown that stalled all businesses.
Revenue of general non-life insurers, that include fire and allied natural calamities, motor insurance, marine, among others, however, grew on a sequential as well as annual basis. While premium rose 19.64% over a year ago to Rs 15,946.46 crore, it rose 1.68% sequentially.
Private non-life insurers' revenue rose 55.61% year-on-year to Rs 1,259.23 crore but contracted 42.37% on a sequential basis.
State-run non-life insurers' revenue surged 182.66% over April last year to Rs 103.85 crore, while falling 92.74% sequentially.
The two listed players in the space registered growth:
ICICI Lombard General Insurance Co.'s gross premium rose 26.56% year-on-year to Rs 1,766.27 crore. On a sequential basis, it increased 81.39%.
The New India Assurance Co.'s gross premium increased 22.47% year-on-year to Rs 3,871.87 crore. It rose 57.31% over last month.
Care Ratings Ltd. expects non-life premiums to be driven by uptick in the health segment. “Further, enhanced digital solutions coupled with the offline offerings are expected to contribute to the premiums of the non-life companies,” it said. The rating agency also said rise in premium rates, especially for motor third-party and other segments, would drive growth.
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