Insurance Monthly Update – February 2010

After witnessing a submissive growth of 3% yoy in January ‘10, Indian Life Insurance Industry bounced back with a robust growth of 27.7% yoy in total Annual Premium Equivalent (APE)# in February ’10. LIC registered an impressive growth of 41.4% yoy in February ’10 against a fall of 7.4% yoy in January ‘10. The growth was partially on account of new NAV-guaranteed scheme, ‘LIC Wealth Plus’ (so far ~Rs30bn). Private players’ held their growth momentum for the fifth consecutive month; reporting an APE growth of 18% yoy. The growth was prominent among the top-5 private players, except ICICI Prudential Life (APE down by 6.8% yoy). On a mom basis, the industry saw a growth of 6.1%. LIC, leading the industry, reported an APE growth of 7.5% mom. Underperforming the industry and LIC, private players cumulatively reported a growth of 4.9% mom in February ‘10.