Life Insurers Surge 40% on GST Relief, LIC Leads Charge

INSURANCE
Whalesbook Logo
AuthorRiya Kapoor|Published at:
Life Insurers Surge 40% on GST Relief, LIC Leads Charge
Overview

India's life insurance sector saw its strongest monthly growth in December, with new business premiums (NBP) soaring nearly 40% year-on-year. This surge, reaching ₹42,151 crore, was propelled by improved affordability following Goods and Services Tax (GST) rationalization and robust performances from state-owned Life Insurance Corporation of India (LIC) and major private players.

Life insurers in India posted a powerful performance in December, marking the strongest month of the current financial year with nearly 40% year-on-year growth in new business premiums (NBP).

Robust December Growth

Total first-year premium income jumped 39.5% to ₹42,151 crore, a significant increase from ₹30,219 crore in the same month last year. This strong outturn followed a more than 20% growth recorded in November.

LIC Takes the Lead

State-owned Life Insurance Corporation of India (LIC) spearheaded this expansion, reporting a 57.45% surge in new business premiums to ₹21,294 crore. LIC's group single premium business saw an 80% increase, while individual policy premiums rose 27%.

Private Insurers Contribute

Private life insurers collectively achieved a 25% increase, with premiums totaling ₹20,857 crore. Individual business premiums for private players grew 21%, while group business saw a 36% rise. Among major private entities, SBI Life Insurance reported a 19% increase to ₹6,336.96 crore, HDFC Life Insurance saw a 14.55% rise to ₹3,108 crore, and ICICI Prudential Life Insurance posted a 25% increase to ₹1,945 crore.

Policy Sales Accelerate

Policy issuance also remained buoyant, with life insurers selling 28 lakh policies in December, a 35.44% increase year-on-year. This indicates a growing customer base adopting new life insurance products.

Cumulative Performance

On a cumulative basis for the April-December period, new business premiums rose 13% to ₹3.11 lakh crore. LIC's premiums grew 12.34%, and private insurers reported a 14% increase. Policy sales volume during this nine-month period edged up 1.71%, reversing a contraction seen last year.

Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.