This report by IRDAI encompasses data on first year premium collections, number of policies sold and total sum assured. The macro comparison that IRDA offers on a monthly basis gives a quick insight into the monthly performance of life insurers as well as the year-to-date (YTD) performance of the insurance business. It covers LIC and the private insurers separately, but also gives consolidated view.
In terms of first year premium, LIC bucked the trend of the last few months and jumped from negative growth to positive growth. However, the cumulative number of policies sold by LIC was still lower on a yoy basis. For the month of June 2023, the overall growth in first year premiums was much higher at 20.96% compared to private life insurers growing at 13.01%. For FY24 YTD, the weak LIC numbers pulled overall growth to negative zone.
What we read from the First year premium numbers of June 2023
The table below captures the performance of LIC, private insurers and the overall insurance sector for the month of June 2023 and for FY24 to date, based on first year premiums.
Insurer |
FIRST YEAR PREMIUM |
||||||
Jun-22 | Jun-23 |
YOY |
FY23 (YTD) |
FY24 (YTD) |
YOY |
Market |
|
|
|
|
|
|
|||
Private Total |
10,610.89 |
11,990.91 |
13.01 |
25,473.53 |
28,167.64 |
10.58 |
38.58 |
Individual Single Premium |
1,418.05 |
1,558.29 |
9.89 |
3,594.26 |
3,919.16 |
9.04 |
46.18 |
Individual Non-Single Premium |
4,189.31 |
4,704.77 |
12.30 |
10,380.59 |
11,202.55 |
7.92 |
65.61 |
Group Single Premium |
4,356.06 |
4,787.01 |
9.89 |
9,321.71 |
10,700.39 |
14.79 |
24.23 |
Group Non-Single Premium |
12.49 |
6.16 |
-50.65 |
39.02 |
16.63 |
-57.38 |
1.95 |
Group Yearly Renewable Premium |
634.98 |
934.68 |
47.20 |
2,137.94 |
2,328.92 |
8.93 |
96.03 |
|
|
|
|
|
|||
LIC of India |
20,643.67 |
24,970.82 |
20.96 |
48,201.00 |
44,837.20 |
-6.98 |
61.42 |
Individual Single Premium |
1,705.56 |
2,051.11 |
20.26 |
4,633.24 |
4,568.25 |
-1.40 |
53.82 |
Individual Non-Single Premium |
2,583.27 |
2,243.51 |
-13.15 |
6,283.43 |
5,870.93 |
-6.56 |
34.39 |
Group Single Premium |
16,068.57 |
20,510.91 |
27.65 |
36,143.86 |
33,465.56 |
-7.41 |
75.77 |
Group Non-Single Premium |
253.88 |
119.67 |
-52.86 |
1,051.36 |
836.26 |
-20.46 |
98.05 |
Group Yearly Renewable Premium |
32.38 |
45.63 |
40.91 |
89.11 |
96.20 |
7.96 |
3.97 |
|
|
|
|
|
|||
Grand Total |
31,254.55 |
36,961.73 |
18.26 |
73,674.53 |
73,004.85 |
-0.91 |
100.00 |
Individual Single Premium |
3,123.60 |
3,609.40 |
15.55 |
8,227.51 |
8,487.41 |
3.16 |
100.00 |
Individual Non-Single Premium |
6,772.58 |
6,948.27 |
2.59 |
16,664.03 |
17,073.47 |
2.46 |
100.00 |
Group Single Premium |
20,424.64 |
25,297.92 |
23.86 |
45,465.57 |
44,165.95 |
-2.86 |
100.00 |
Group Non-Single Premium |
266.37 |
125.83 |
-52.76 |
1,090.38 |
852.89 |
-21.78 |
100.00 |
Group Yearly Renewable Premium |
667.36 |
980.31 |
46.89 |
2,227.05 |
2,425.12 |
8.89 |
100.00 |
Data Source: IRDAI
Even a cursory glance at the above table would tell us that LIC has bounced back in June 2023 in terms of first year premiums while the private players have grown at a slower clip compared to LIC. Here are some of the key takeaways from the table above.
The change to the new tax regime appears to have take away some sheen from LIC business performance, but after the surprise of April and May, LIC has shown recovery in June 2023.
What we read from number of policies sold in June 2023?
The table below captures the performance of LIC, private insurers and the overall insurance sector for the month of June 2023 and for FY24 to date, based on number of policies sold.
Insurer |
NO. OF POLICIES / SCHEMES |
||||||
Jun-22 | Jun-23 |
YOY |
FY23 (YTD) |
FY24 (YTD) |
YOY |
Market |
|
|
|
|
|
|
|||
Private Total |
6,05,821 |
6,38,430 |
5.38 |
15,16,193 |
15,75,369 |
3.90 |
32.83 |
Individual Single Premium |
19,848 |
20,499 |
3.28 |
55,762 |
54,160 |
-2.87 |
23.98 |
Individual Non-Single Premium |
5,85,505 |
6,17,289 |
5.43 |
14,59,303 |
15,19,261 |
4.11 |
33.29 |
Group Single Premium |
104 |
121 |
16.35 |
227 |
315 |
38.77 |
83.11 |
Group Non-Single Premium |
17 |
8 |
-52.94 |
54 |
27 |
-50.00 |
2.76 |
Group Yearly Renewable Premium |
347 |
513 |
47.84 |
847 |
1,606 |
89.61 |
23.46 |
|
|
|
|
|
|||
LIC of India |
15,27,002 |
13,05,098 |
-14.53 |
36,87,386 |
32,22,557 |
-12.61 |
67.17 |
Individual Single Premium |
77,200 |
76,734 |
-0.60 |
1,94,292 |
1,71,663 |
-11.65 |
76.02 |
Individual Non-Single Premium |
14,47,267 |
12,25,046 |
-15.35 |
34,87,472 |
30,44,638 |
-12.70 |
66.71 |
Group Single Premium |
143 |
26 |
-81.82 |
307 |
64 |
-79.15 |
16.89 |
Group Non-Single Premium |
499 |
339 |
-32.06 |
1,246 |
953 |
-23.52 |
97.24 |
Group Yearly Renewable Premium |
1,893 |
2,953 |
56.00 |
4,069 |
5,239 |
28.75 |
76.54 |
|
|
|
|
|
|||
Grand Total |
21,32,823 |
19,43,528 |
-8.88 |
52,03,579 |
47,97,926 |
-7.80 |
100.00 |
Individual Single Premium |
97,048 |
97,233 |
0.19 |
2,50,054 |
2,25,823 |
-9.69 |
100.00 |
Individual Non-Single Premium |
20,32,772 |
18,42,335 |
-9.37 |
49,46,775 |
45,63,899 |
-7.74 |
100.00 |
Group Single Premium |
247 |
147 |
-40.49 |
534 |
379 |
-29.03 |
100.00 |
Group Non-Single Premium |
516 |
347 |
-32.75 |
1,300 |
980 |
-24.62 |
100.00 |
Group Yearly Renewable Premium |
2,240 |
3,466 |
54.73 |
4,916 |
6,845 |
39.24 |
100.00 |
Data Source: IRDAI
What did we read from the IRDAI data on policies sold by LIC and the private players? Here are some key takeaways.
LIC has maintained a semblance of dominance in number of policies, but the pressure of the tax shift is clearly showing on the monthly numbers of LIC.
What we read from the sum assured data for June 2023
The table below captures the performance of LIC, private insurers and the overall insurance sector for the month of June 2023 and for FY24 to date, based on total sum assured.
Insurer |
SUM ASSURED |
||||||
Jun-22 | Jun-23 |
YOY |
FY23 (YTD) |
FY24 (YTD) |
YOY |
Market |
|
|
|
|
|
|
|||
Private Total |
4,39,119 |
6,61,850 |
50.72 |
11,92,681 |
18,19,106 |
52.52 |
91.83 |
Individual Single Premium |
1,603 |
1,359 |
-15.20 |
4,156 |
3,373 |
-18.85 |
56.09 |
Individual Non-Single Premium |
1,07,852 |
1,39,890 |
29.71 |
2,84,034 |
3,62,448 |
27.61 |
78.76 |
Group Single Premium |
1,11,824 |
2,63,885 |
135.98 |
3,05,489 |
5,11,434 |
67.41 |
99.96 |
Group Non-Single Premium |
14,150 |
5,641 |
-60.14 |
30,248 |
18,813 |
-37.81 |
74.09 |
Group Yearly Renewable Premium |
2,03,690 |
3,12,426 |
53.38 |
5,68,753 |
9,23,038 |
62.29 |
94.41 |
|
|
|
|
|
|||
LIC of India |
91,689 |
60,210 |
-34.33 |
2,06,553 |
1,61,797 |
-21.67 |
8.17 |
Individual Single Premium |
1,384 |
1,206 |
-12.91 |
3,442 |
2,640 |
-23.29 |
43.91 |
Individual Non-Single Premium |
47,963 |
38,810 |
-19.08 |
1,16,491 |
97,760 |
-16.08 |
21.24 |
Group Single Premium |
104 |
75 |
-27.70 |
233 |
189 |
-18.78 |
0.04 |
Group Non-Single Premium |
2,117 |
2,379 |
12.38 |
4,854 |
6,578 |
35.51 |
25.91 |
Group Yearly Renewable Premium |
40,120 |
17,740 |
-55.78 |
81,533 |
54,629 |
-33.00 |
5.59 |
|
|
|
|
|
|||
Grand Total |
5,30,808 |
7,22,060 |
36.03 |
13,99,234 |
19,80,902 |
41.57 |
100.00 |
Individual Single Premium |
2,987 |
2,565 |
-14.14 |
7,598 |
6,013 |
-20.86 |
100.00 |
Individual Non-Single Premium |
1,55,816 |
1,78,700 |
14.69 |
4,00,526 |
4,60,208 |
14.90 |
100.00 |
Group Single Premium |
1,11,928 |
2,63,960 |
135.83 |
3,05,722 |
5,11,623 |
67.35 |
100.00 |
Group Non-Single Premium |
16,267 |
8,020 |
-50.70 |
35,103 |
25,391 |
-27.67 |
100.00 |
Group Yearly Renewable Premium |
2,43,810 |
3,30,166 |
35.42 |
6,50,286 |
9,77,667 |
50.34 |
100.00 |
Data Source: IRDAI
Here are some of our major takeaways from the sum assured data for June 2023 for the private insurers and for the LIC.
The June numbers surely leaves LIC with a lot of food for thought. It has done better in June 2023, but the pressure of the shift to NTR is still showing on LIC numbers. This is also likely to reflect on the stock price of LIC.
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