iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

How life insurance business performed in May 2023

11 Jun 2023 , 09:12 AM

This pertains to data on first year premium collections, the number of policies sold and the total sum assured. The macro comparison that IRDA offers on a monthly basis gives a quick insight into how life insurers performed in the previous month as well as on a cumulative basis for the fiscal year to date.

One trend that has been visible in first  year premiums is that LIC has been seeing contraction in premiums yoy while private players are still managing to hold on to positive growth. However, doe to the predominant position of LIC, the overall industry level data has been relatively weak. Let us look at the performance of May 2023 across first year premiums, number of policies sold and the total sum assured.

What we read from the First year premium numbers of May 2023

The table below captures the performance of LIC, private insurers and the overall insurance sector for the month of May and for FY24 to date, based on first year premiums.

Insurer

FIRST YEAR PREMIUM 

May-22 May-23

YOY 
(%)

FY23 
(YTD)
FY24 
(YTD)

YOY 
(%)

Market 
Share (%)

   

 

 

 

 

 

 

Private Total

8,639.72

9,421.51

9.05

14,862.64

16,176.72

8.84

44.88

Individual Single Premium

1,176.57

1,329.66

13.01

2,176.22

2,360.86

8.48

48.40

Individual Non-Single Premium

3,375.20

3,721.63

10.26

6,191.28

6,497.78

4.95

64.17

Group Single Premium

2,985.43

3,635.37

21.77

4,965.65

5,911.98

19.06

31.34

Group Non-Single Premium

15.55

5.03

-67.66

26.53

10.47

-60.55

1.44

Group Yearly Renewable Premium

1,086.97

729.83

-32.86

1,502.96

1,395.64

-7.14

96.50

   

 

 

 

 

 

 

LIC of India

15,840.63

14,056.29

-11.26

27,557.34

19,866.39

-27.91

55.12

Individual Single Premium

1,608.95

1,502.68

-6.61

2,927.69

2,517.14

-14.02

51.60

Individual Non-Single Premium

2,127.22

2,104.87

-1.05

3,700.16

3,627.42

-1.97

35.83

Group Single Premium

11,607.85

10,055.02

-13.38

20,075.29

12,954.65

-35.47

68.66

Group Non-Single Premium

481.97

376.51

-21.88

797.47

716.59

-10.14

98.56

Group Yearly Renewable Premium

14.64

17.21

17.55

56.73

50.57

-10.85

3.50

   

 

 

 

 

 

 

Grand Total

24,480.36

23,477.80

-4.10

42,419.97

36,043.11

-15.03

100.00

Individual Single Premium

2,785.53

2,832.33

1.68

5,103.90

4,878.01

-4.43

100.00

Individual Non-Single Premium

5,502.42

5,826.50

5.89

9,891.44

10,125.20

2.36

100.00

Group Single Premium

14,593.28

13,690.39

-6.19

25,040.93

18,866.63

-24.66

100.00

Group Non-Single Premium

497.52

381.54

-23.31

824.00

727.06

-11.76

100.00

Group Yearly Renewable Premium

1,101.61

747.04

-32.19

1,559.69

1,446.21

-7.28

100.00

Data Source: IRDAI

Even a cursory glance at the above table would tell us that LIC has been struggling in May 2023 in terms of first year premiums while the private players are still managing to show positive growth on a yoy basis. Here are some of the key takeaways from the table above.

  • For the month of May 2023, first year premium collections overall fell by -4.1% to Rs23,478 crore. However, respective performances diverged. LIC an -11.3% contraction in first year premiums for May at Rs14,056 crore while private players saw a 9.1% growth in first year premium collections for May 2023 at Rs9,422 crore. 

     

  • Let us turn to the cumulative picture for the first two months of FY24. Overall, first year premium collections for the industry contracted by -15.0% over the corresponding period last year. Here again there is divergence. While LIC saw cumulative first year premiums for FY24 contract by -27.9%, private players saw the number expand by 8.8%.

     

  • What were the positive and negative growth drivers for the insurance industry. For May 2023, individual single premium policies and individual non-single premium policies showed positive growth while group single, group non-single and group renewable premiums saw contraction in May compared to the previous year. For LIC, all categories other than group yearly renewable premiums saw contraction. In the case of private insurers only group single and group year renewable premiums saw contraction with the other 3 saw expansion in premiums.

     

  • How does that leave the cumulative market share of LIC and the private insurers for FY24 so far? In terms of share of cumulative first year premiums, LIC share has fallen to 55.1% while private insurers have a share of 44.9% for the first 2 months of FY24.

The change to the new tax regime appears to have take away some sheen from LIC business performance, since insurance is unlikely to be the major driver of tax saving.

What we read from number of policies sold in May 2023?

The table below captures the performance of LIC, private insurers and the overall insurance sector for the month of May and for FY24 to date, based on the number of policies sold.

Insurer

NO. OF POLICIES / SCHEMES

May-22 May-23

YOY 
(%)

FY23 
(YTD)
FY24 
(YTD)

YOY
 (%)

Market 
Share (%)

   

 

 

 

 

 

 

Private Total

5,02,415

5,28,561

5.20

9,10,372

9,36,938

2.92

32.82

Individual Single Premium

19,015

17,235

-9.36

35,914

33,661

-6.27

26.18

Individual Non-Single Premium

4,83,067

5,10,638

5.71

8,73,798

9,01,972

3.22

33.14

Group Single Premium

61

111

81.97

123

194

57.72

83.62

Group Non-Single Premium

21

10

-52.38

37

19

-48.65

3.00

Group Yearly Renewable Premium

251

568

126.29

500

1,093

118.60

32.35

   

 

 

 

 

 

 

LIC of India

12,47,243

11,32,763

-9.18

21,60,384

19,17,459

-11.24

67.18

Individual Single Premium

66,977

57,577

-14.03

1,17,092

94,929

-18.93

73.82

Individual Non-Single Premium

11,78,310

10,73,435

-8.90

20,40,205

18,19,592

-10.81

66.86

Group Single Premium

133

25

-81.20

164

38

-76.83

16.38

Group Non-Single Premium

492

363

-26.22

747

614

-17.80

97.00

Group Yearly Renewable Premium

1,331

1,363

2.40

2,176

2,286

5.06

67.65

   

 

 

 

 

 

 

Grand Total

17,49,658

16,61,324

-5.05

30,70,756

28,54,397

-7.05

100.00

Individual Single Premium

85,992

74,812

-13.00

1,53,006

1,28,590

-15.96

100.00

Individual Non-Single Premium

16,61,377

15,84,073

-4.65

29,14,003

27,21,564

-6.60

100.00

Group Single Premium

194

136

-29.90

287

232

-19.16

100.00

Group Non-Single Premium

513

373

-27.29

784

633

-19.26

100.00

Group Yearly Renewable Premium

1,582

1,931

22.06

2,676

3,379

26.27

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.

  • Overall number of policies showed a -5.1% contraction for life insurers overall. However, the divergence was visible here also. While LIC saw -9.2% contraction in number of policies sold in May 2023, private insurers have seen 5.2% growth. That trend is approximately replicated even if you look at the cumulative trend for FY24.

     

  • How does market share look like for LIC versus private players in FY24 (April and May)? Here LIC still has a 67.2% market share with private players taking away the balance 32.8% market share. For now, it does look like the feet on street is doing a great job for LIC in terms of the number of policies sold, although the NTR (new tax regime) appears to have taken a toll on these numbers too.

LIC has maintained a semblance of dominance in number of policies, but the pressure of the tax shift is clearly showing on the numbers of LIC.

What we read from the sum assured numbers for May 2023

The table below captures the performance of LIC, private insurers and the overall insurance sector for the month of May and for FY24 to date, based on total sum assured.

Insurer

SUM ASSURED

May-22 May-23

YOY 
(%) 

FY23 
(YTD)
FY24 
(YTD)

YOY 
(%)

Market 
Share (%)

   

 

 

 

 

 

 

Private Total

4,25,287

5,35,023

25.80

7,53,564

10,95,905

45.43

91.52

Individual Single Premium

1,340

1,136

-15.20

2,554

2,014

-21.14

58.40

Individual Non-Single Premium

94,014

1,18,497

26.04

1,76,183

2,22,559

26.32

79.06

Group Single Premium

1,04,016

1,27,243

22.33

1,93,665

2,47,491

27.79

99.95

Group Non-Single Premium

8,978

4,316

-51.92

16,098

13,172

-18.17

75.83

Group Yearly Renewable Premium

2,16,939

3,13,933

44.71

3,65,063

6,10,670

67.28

94.30

   

 

 

 

 

 

 

LIC of India

66,695

49,854

-25.25

1,14,864

1,01,586

-11.56

8.48

Individual Single Premium

1,194

890

-25.46

2,057

1,434

-30.27

41.60

Individual Non-Single Premium

40,258

35,010

-13.04

68,528

58,950

-13.98

20.94

Group Single Premium

93

47

-49.12

130

114

-11.64

0.05

Group Non-Single Premium

1,542

1,724

11.80

2,737

4,199

53.40

24.17

Group Yearly Renewable Premium

23,608

12,184

-48.39

41,412

36,889

-10.92

5.70

   

 

 

 

 

 

 

Grand Total

4,91,982

5,84,877

18.88

8,68,428

11,97,491

37.89

100.00

Individual Single Premium

2,534

2,027

-20.03

4,611

3,448

-25.22

100.00

Individual Non-Single Premium

1,34,272

1,53,506

14.32

2,44,711

2,81,509

15.04

100.00

Group Single Premium

1,04,109

1,27,291

22.27

1,93,795

2,47,605

27.77

100.00

Group Non-Single Premium

10,520

6,040

-42.58

18,835

17,371

-7.77

100.00

Group Yearly Renewable Premium

2,40,547

3,26,117

35.57

4,06,476

6,47,559

59.31

100.00

Data Source: IRDAI

Here are some of our major takeaways from the sum assured data for May 2023 for the private insurers and for the LIC.

  • Private sector has always dominated the sum assured space due to their focus on term policies and less on endowments. Hence their ratio of sum assured to premiums has always been higher. Sum Assured for May 2023 was up 18.9% for the industry as a whole. However, while private insurers grew sum assured by 25.8%, LIC saw contraction in sum assured of -25.3% yoy.

     

  • In terms of market share for FY24, private sector takes 91.5% share while LIC gets just 8.5% share, for the reason we already discussed in the previous point.

The May numbers surely leaves LIC with serious thinking points, especially in the aftermath of the new tax regime. After all, LIC is now a listed company with a lot of market scrutiny.

Related Tags

  • HDFC Life
  • ICICI Prudential Life
  • IRDAI
  • Life insurance
  • Life Insurance Corporation
  • Max Life
  • SBI Life
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Invest Right News

BSE: Firing on all cylinders
9 Apr 2024|10:33 AM
Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.