Insurance companies with high Persistency Ratio of up to 88% to keep an eye on

While evaluating insurance companies, we look at various ratios like persistency ratio, solvency ratio, claim settlement ratio and so on. Persistency ratio indicates how many policyholders are paying the due premiums regularly on the policies with the insurer. In other words, it shows how loyal customers are to an insurance company. 

Persistency ratio is measured for the financial year or a combination of financial years starting 1 year to 5 years. The 1st year’s persistency ratio is estimated in the 1st month of the next year and so on. Therefore the one-year persistency ratio is indicated as the 13th-month ratio and the 3-year ratio would be called the 37th-month persistency ratio, and so on. 

Here are a few insurance companies with a high 13th-month persistency ratio: 

HDFC Life Insurance Company Ltd 

HDFC Life Insurance Company is engaged in carrying on the business of life insurance. It offers a spectrum of individual and group insurance solutions. Its portfolio comprises various insurance and investment products such as protection, pension, savings and so on. 

With a market capitalization of ₹ 1,38,737 crores, HDFC Life Insurance Company is a large-cap company. Its 13th-month persistency ratio for Q1FY2024 stood at 88 percent. 

ICICI Prudential Life Insurance Company Ltd 

ICICI Prudential Life Insurance Company Ltd carries on the business of providing life insurance, pensions and health insurance products to individuals and groups. 

With a market capitalization of ₹ 81,876 crores, ICICI Prudential Life Insurance Company is a large-cap company. Its 13th-month persistency ratio for Q1FY2024 stood at 86.4 percent. 

SBI Life Insurance Company Ltd 

SBI Life Insurance Company was started as a joint venture between the State Bank of India and BNP Paribas Cardif S.A. It is engaged in the business of life insurance and annuity. 

With a market capitalization of ₹ 1,35,446 crores, SBI Life Insurance Company is a large-cap company. Its 13th-month persistency ratio for Q1FY2024 stood at 73.79 percent. 

Written by Simran Bafna 

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