Synopsis: Life insurers’ first-year premiums rose 14.8% YoY to Rs. 40,207 crore in September, led by strong performances from LIC and private players like SBI Life, HDFC Life, and ICICI Prudential Life.
India’s life insurance industry witnessed strong growth in September, with total first-year premiums rising 14.8% year-on-year (YoY) to Rs. 40,207 crore, reflecting improving demand for life protection and savings products. The growth indicates a broad-based recovery in the insurance sector, supported by both state-owned and private life insurers.
The first-year premium in life insurance refers to the initial premium amount you pay when you purchase a life insurance policy. For example, if you buy a life insurance policy and pay Rs. 50,000 as your first-year premium, that amount is counted as part of the insurer’s First-Year Premium income.
Life Insurance Sector Sees Broad-Based Growth
The country’s largest life insurer, LIC (Life Insurance Corporation of India), maintained its dominant position with first-year premiums of Rs. 22,957 crore, marking a 12.7% YoY increase. The steady growth of LIC signals continued trust among retail customers.
With market capitalization of Rs. 5,72,128 cr, the shares of Life Insurance Corporation of India is currently trading at Rs. 905 per share, from its previous close of Rs. 905.25 per share. Private life insurers collectively recorded a strong performance as well, reporting premiums worth Rs. 17,250 crore, a 17.7% YoY jump.
Within this segment, SBI Life Insurance emerged as the standout performer, with its first-year premium surging 32.1% YoY to Rs. 3,953 crore, showcasing strong customer acquisition and improved market share.
With market capitalization of Rs. 1,83,901 cr, the shares of SBI Life Insurance company Ltd is currently trading at Rs. 1,836 per share, from its previous close of Rs. 1,785 per share.
Among other private players, HDFC Life Insurance reported a 10.2% YoY increase in first-year premiums to Rs. 2,942 crore, maintaining its steady growth trajectory. Meanwhile, ICICI Prudential Life Insurance registered a 6.1% YoY rise to Rs. 1,761 crore, indicating moderate growth compared to peers.
With market capitalization of Rs. 1,62,828 cr, the shares of HDFC Life Insurance Company Ltd is currently trading at Rs.755 per share, from its previous close of Rs. 759.20 per share.
With market capitalization of Rs. 86,814 cr, the shares of ICICI Prudential Life Insurance company Ltd is currently trading at Rs. 601 per share, from its previous close of Rs. 601.10 per share. Overall, the September data underscores the resilience of India’s life insurance industry amid evolving financial awareness and rising demand for protection plans.
Written by Manideep Appana
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