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Life insurers’ new business premium income rises 13% in FY22

Collective new business premium income of life insurance coverage corporations’ witnessed a 12.93% year-on-year development to Rs 314,263 crore for the final monetary year, from Rs 278,278 crore in the earlier fiscal, backed by an increase in group single premium and group yearly renewable premium, information from Irdai confirmed on Monday.

The new business premium, or the first-year premium, of 23 non-public sector life insurance coverage corporations, posted a 22.74% Y-o-Y development to Rs 115,503.12 crore for 2021-22, whereas IPO-bound LIC registered a 7.92% Y-o-Y improve to Rs 198,759.85 crore. Notably, for 2020-21, the life insurance coverage sector’s first-year premium grew by 7.49%.

Due to the Covid-19 pandemic lockdown and resultant affect, premiums had been affected in FY21 and resultant totally different development after the identical, the bottom impact might also be potential in month-to-month FY22 numbers,” a be aware from CareEdge mentioned.

LIC continues to take care of its dominant share in the first-year premium for FY22 (LIC share of 63.2% vs 36.8% share of personal corporations). The non-public sector has continued to achieve market share, provided that it has been rising at a sooner tempo in comparison with LIC,” CareEdge mentioned in its be aware.

Among main insurers in the non-public sector, HDFC Standard Life posted a 20.05% y-o-y soar in new premium to Rs 24,301.07 crore for the final fiscal, whereas for ICICI Prudential Life Insurance, it was up by 15.37% to Rs 15,035.52 crore. SBI Life Insurance’s new business premium income was up 23.43% to Rs 25,458.29 crore, Bajaj Allianz Life was up by 44.72% to Rs 9,135.82 crore and Max Life jumped 15.78% to Rs 7,904.35 crore.

However, Future Generali witnessed a drop of 12.64% in new year premium to Rs 456.97 crore for the final fiscal. Aegon Life was down by 73.02% to Rs 16.67 crore, based on the Irdai information.

First-year premium of life insurers reported a strong y-o-y development rate of 37.30% in March 2022 and reached Rs 59,608.98  crore. “The robust growth in monthly numbers can be attributed to an increase in single premiums for both individual and group segments in the last month of the financial year (with individuals undertaking tax planning measures), with LIC substantially outpacing its private peers for the second month in a row,” CareEdge mentioned.

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