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LIC maintains NBP growth momentum in May 2025

10 Jun 2025 , 11:51 AM

MAY 2025 – LIC CONTINUES TO GROW NBP AT STEADY RATE

The growth in NBP (new business premium) recorded by LIC in May 2025 may be lower than private insurers, but the momentum appears to be strong for LIC. For May, LIC grew NBP at 10.3%, while the cumulative growth for FY26 was 10.1%. The corresponding figures were 16.6% and 12.1% for private insurers. At an overall level, the NBP grew by 12.7% for May 2025 over the same month last year, while the cumulative growth for FY26 stood at 10.9%. The start of FY26 appears to be more promising than FY25, as the private insurers and LIC appear to be coming to terms with the new order where insurance is bought and not sold.

MAY 2025 NBP GROWS 12.7%, FY26 at 10.9%

The table captures new business premium (NBP) growth of life insurers for May 2025.

PARTICULARS	NBP (May-25)	NBP (May-24)	Growth YOY (%) May-25 / May-24	Growth YOY (%) FY26 / FY25
Individual Single Premium	3,525.28	3,350.77	5.21%	4.89%
Individual Non Single Premium	7,086.10	6,916.67	2.45%	1.28%
Group Single Premium	18,068.04	15,976.07	13.09%	12.45%
Group Non Single Premium	258.13	102.19	152.60%	29.39%
Group Yearly Renewable Premium	1,525.66	688.45	121.61%	95.71%
Grand Total Premium Flows	30,463.21	27,034.15	12.68%	10.86%
PRIVATE INSURANCE COMPANIES
Individual Single Premium	1,555.61	1,528.24	1.79%	2.93%
Individual Non Single Premium	5,025.59	4,681.07	7.36%	5.02%
Group Single Premium	4,713.36	3,497.31	34.77%	19.73%
Group Non Single Premium	30.20	11.69	158.34%	67.84%
Group Yearly Renewable Premium	733.40	625.44	17.26%	41.91%
Private Insurer Premium Flows	12,058.16	10,343.75	16.57%	12.04%
LIC OF INDIA
Individual Single Premium	1,969.66	1,822.53	8.07%	6.53%
Individual Non Single Premium	2,060.51	2,235.60	-7.83%	-6.31%
Group Single Premium	13,354.68	12,478.75	7.02%	10.33%
Group Non Single Premium	227.93	90.50	151.86%	25.42%
Group Yearly Renewable Premium	792.26	63.01	1157.36%	546.60%
LIC Premium Flows	18,405.05	16,690.39	10.27%	10.12%

Data Source: Life Insurance Council (New Business Premiums – NBP figures are ₹ in Crore)

There are 2 quick takeaways from the NBP data for May 2025 and FY25 till date.

Life insurance sector saw yoy growth in first year premiums of 12.7% in May 2025. Private insurers did better, growing NBP at 16.6% in May 2025, while LIC trailed with NBP growth of 10.3%. The corresponding figures for cumulative FY26 also followed a similar trend.
Overall premium collections for May 2025 was higher YOY and MOM at ₹30,463 Crore. Private insurers saw their share of NBP improving marginally to 39.6% in May 2025; compared to 38.0% in April, 39.9% in March, 48.3% in February, and 47.1% in January 2025. The share of LIC fell correspondingly to 60.4% in May 2025; compared to 62% in April, 60.1% in March, and 51.7% in February 2025.

The new business premiums in May were about 40% higher than in April 2025, which is the normal pattern in most years. In FY25, private insurers had stolen a march over LIC. The private sector edge appears to be restricted in FY26, but next few months will be critical.

LIC AGAIN WITNESSES SHARP CONTRACTION IN POLICIES SOLD

In terms of number of policies sold, the yoy contraction was much sharper for LIC than for the private insurers.

PARTICULARS	Policies (Apr-2025)	Policies (Apr-2024)	Growth YOY (%) May-25 / May-24	Growth YOY (%) FY26 / FY25
Individual Single Premium	80,668	93,441	-13.67%	-10.59%
Individual Non Single Premium	15,90,264	17,71,631	-10.24%	-11.64%
Group Single Premium	216	203	6.40%	6.03%
Group Non Single Premium	346	357	-3.08%	-13.29%
Group Yearly Renewable Premium	1,603	2,465	-34.97%	-23.41%
Grand Total No. of Policies	16,73,097	18,68,097	-10.44%	-11.60%
PRIVATE INSURANCE COMPANIES
Individual Single Premium	19,224	20,928	-8.14%	-9.54%
Individual Non Single Premium	5,84,510	5,95,352	-1.82%	-5.09%
Group Single Premium	162	153	5.88%	11.64%
Group Non Single Premium	25	10	150.00%	100.00%
Group Yearly Renewable Premium	589	583	1.03%	5.43%
Private Insurer No. of Policies	6,04,510	6,17,026	-2.03%	-5.24%
LIC OF INDIA
Individual Single Premium	61,444	72,513	-15.26%	-10.97%
Individual Non Single Premium	10,05,754	11,76,279	-14.50%	-15.06%
Group Single Premium	54	50	8.00%	-11.11%
Group Non Single Premium	321	347	-7.49%	-16.99%
Group Yearly Renewable Premium	1,014	1,882	-46.12%	-34.38%
LIC No. of Policies	10,68,587	12,51,071	-14.59%	-14.86%

Data Source: Life Insurance Council (Number of Policies are absolute figures)

Here are quick life insurance takeaways for May 2025 in terms of number of policies sold.

The overall insurance sector saw a fall in number of policies sold at -10.4% for May 2025. While the number of policies sold by LIC fell by -14.6%, the policy sales by the private players fell by just about -2.0%.
Overall policies sold for May 2025 were sharply higher MOM at 16.73 Lakhs, but was lower on yoy basis. Private insurers saw their share of number of policies taper to 36.1%; compared to 36.7% in April, 28.5% in March and 38.2% in February 2025. LIC saw its share for May 2025 pick up to 63.9%; compared to 63.3% and 71.5% in last 2 months.

Let us turn to how the NBP of 5 largest private life insurers grew in May 2025.

NBP TRENDS: TOP 5 PRIVATE INSURERS BY NBP IN MAY 2025

In May 2025, only 3 private insurers saw new business premium (NBP) of over ₹1,000 Crore, with overall growth at 16.6% yoy. The top 5 private insurers account for 74.4% of NBP.

HDFC LIFE INSURANCE COMPANY	May-25 NBP (₹ in Crore)	May-24 NBP (₹ in Crore)	YOY Growth (in %)
Individual Single Premium	322.54	287.00	12.38%
Individual Non Single Premium	892.78	776.63	14.96%
Group Single Premium	1,777.75	1,177.86	50.93%
Group Non Single Premium	0.00	0.00	N.A.
Group Yearly Renewable Premium	29.63	29.40	0.78%
Total	3,022.71	2,270.88	33.11%