Life insurance companies in India experienced a substantial increase in first-year premiums during the first quarter (Q1) of the current financial year (FY25), with an overall growth of 22.91% year-on-year (YoY).Life insurance companies in India experienced a substantial increase in first-year premiums during the first quarter (Q1) of the current financial year (FY25), with an overall growth of 22.91% year-on-year (YoY). This growth was driven by both public and private sector insurers. Life Insurance Corporation of India (LIC), the state-owned behemoth, saw a remarkable surge of 28.11% in its new business premiums, reaching Rs. 57,440.9 crore. This growth was primarily attributed to a surge in group premiums, with a 33.49% increase to Rs. 44,671.86 crore. On the other hand, private life insurers also performed well, posting a 14.62% YoY increase in their premiums, with the total value rising from Rs. 28,167.66 crore to Rs. 32,285.8 crore. This growth was largely driven by the individual segment. SBI Life Insurance, the largest private sector life insurer, achieved a 13% premium growth, with its premiums reaching Rs. 7,032.69 crore. ICICI Prudential Life Insurance also reported a significant 23.5% premium growth, with its premiums amounting to Rs. 3,768.55 crore. This healthy growth in life insurance premiums indicates a growing awareness of the importance of financial protection among Indian consumers. The surge in group premiums suggests an increased focus on employee benefits by corporate entities, while the growth in individual premiums highlights the growing demand for individual life insurance policies.
First-year premiums of life insurance companies grew by almost 23 percent year-on-year during April-June of the current financial year (FY25), marking a healthy double-digit growth among public and private sector insurers.
According to data released by the Life Insurance Council, new corporate premiums (NBP) rose 22.91 per cent year-on-year to Rs 89,726.7 crore in Q1 FY25, compared to Rs 73,004.87 crore in Q1 FY24.
Life Insurance Corporation of India (LIC) posted growth of 28.11 per cent to Rs 57,440.9 crore in the three months ended June 30, 2024, helped by growth in group premiums.
LIC, a market leader in the group insurance segment, posted a 33.49 per cent increase in group insurance premium to Rs 44,671.86 crore in the April-June quarter of FY25 compared to the same period last year.
On the other hand, private life insurers registered a 14.62 per cent YoY improvement in their premiums from Rs 28,167.66 crore to Rs 32,285.8 crore, buoyed by healthy growth in the individual segment.
SBI Life Insurance, the largest private sector life insurer, posted 13 per cent premium growth to Rs 7,032.69 crore compared to last year, while ICICI Prudential Life Insurance posted 23.5 per cent premium growth to Rs 3,768.55 crore.
