New Business Premium: Life insurance companies’ business is continuously growing. The new business premium of life insurance companies increased by about 23 percent in the April-June quarter of the financial year 2024-25. Among the life insurance companies, the new business premium of the country’s largest company, LIC, saw the highest jump of 28 percent. Apart from the public sector LIC, the latest business premium of private sector life insurance companies has also jumped by 14.6 percent.
Business Of Public Sector and Private Companies Has Increased
The first-year premium of life insurance companies increased by about 23 percent in the first quarter of the current financial year. There has been a good jump in the business of public sector and private companies, and according to the Life Insurance Council data, the New Business Premium (NBP) increased by 22.91 percent year-on-year. It rose to Rs 89,726.7 crore in the first quarter of FY 2025 from Rs 73,004.87 crore in the first quarter of FY 24.
LIC Got Help From Increase In Group Premium
Life Insurance Corporation earned Rs 57,440.9 crore in the quarter that ended June 30, 2024, growing 28.11 per cent due to an increase in group premiums. LIC, the market leader in the group insurance segment, earned Rs 44,671.86 crore in its group single premium in the April-June quarter of FY 2025, an increase of 33.49 percent compared to last year.
Business Of Private Companies Also Increased
On the other hand, the New Year premium of private insurance companies has increased by 14.62 percent. It has increased from Rs 28,167.66 crore to Rs 32,285.8 crore. The premium of SBI Life Insurance has risen by 13 percent to Rs 7,032.69 crore. The premium of ICICI Prudential Life Insurance has also increased by 23.5 percent to Rs 3,768.55 crore. HDFC Life, Bajaj Allianz Life Insurance and Max Life Insurance have registered a growth of 9.19 per cent, 17.78 per cent and 11.87 per cent, respectively.
LIC’s Share Increased, Private Companies’ Share Decreased
LIC’s market share was 64 percent, up from 61.4 percent in the same period last year. The share of private insurance companies in NBP was 35.9 percent, up from 38.6 percent last year. In the April-June quarter, life insurance companies registered a growth of about 12 percent in policy sales.
