Life insurance companies reported a 30 per cent year-on-year (YoY) growth in new business premiums (NBP) in November due to good performance by Life Insurance Corporation (LIC), even as private insurers saw their premium growth moderating.
The new business premium as per IRDAI data was to the tune of Rs 35,458 crore in November, up 30 per cent YoY.
While private sector insurers reported marginal growth of 2 per cent YoY to Rs 11,426 crore, LIC’s NBP soared 51 per cent YoY to Rs 24,032 crore during the same period.
LIC’s growth in NBP was mostly driven by group single premiums, which were up almost 70 per cent YoY in November.
LIC is the largest player in the group single premium market.
However, on an annualised premium equivalent (APE) basis, private sector life insurance companies grew 21 per cent, following a 3-11 per cent growth over the past three months.
Likewise, LIC’s premium on an APE basis was up 30 per cent YoY in November, as opposed to 11-15 per cent in the past three months. Analysts said increased activity after a slowdown in business in October due to the festival season could be the reason for higher growth in November.