DECEMBER 2024 – PRIVATE INSURERS STILL HAVE AN EDGE
For the last two months, LIC had witnessed contraction in new business premiums. That trend persisted in December 2024 also, as new business premium (NBP) contracted by a steep -41.2%. However, on a cumulative basis for the 9 months of FY25, LIC showed positive growth in NBP. What about the number of policies sold? Here again, December saw LIC reporting contraction of -31.6% in number of policies sold, while on a cumulative FY25 basis, the contraction was lower at -6.7%. With the LIC having dominated NBP growth for the better part of the last one year, the tide appears to have shifted firmly in favour of the private life insurance players.
PRIVATE INSURERS AGAIN DOMINATE NBP GROWTH IN DEC-24
The table below captures the performance of LIC, private insurers and the overall insurance sector for December 2024 and for the first 9 months of FY25.
PARTICULARS | NBP (Dec-2024) |
NBP (Dec-2023) |
Growth YOY (%) Dec-24 / Dec-23 |
Growth YOY (%) FY25 / FY24 |
Individual Single Premium | 4,633.12 | 4,081.38 | 13.52% | 13.68% |
Individual Non Single Premium | 12,467.51 | 11,927.50 | 4.53% | 14.52% |
Group Single Premium | 12,232.36 | 21,682.95 | -43.59% | 6.14% |
Group Non Single Premium | 89.22 | 225.12 | -60.37% | -12.88% |
Group Yearly Renewable Premium | 796.50 | 666.17 | 19.56% | 29.33% |
Grand Total Premium Flows | 30,218.71 | 38,583.13 | -21.68% | 9.91% |
PRIVATE INSURANCE COMPANIES | ||||
Individual Single Premium | 2,111.10 | 2,081.19 | 1.44% | 8.62% |
Individual Non Single Premium | 9,838.77 | 8,816.17 | 11.60% | 19.68% |
Group Single Premium | 4,041.08 | 4,080.98 | -0.98% | 5.25% |
Group Non Single Premium | 41.84 | 14.62 | 186.18% | 130.52% |
Group Yearly Renewable Premium | 662.06 | 608.88 | 8.73% | 28.68% |
Private Insurer Premium Flows | 16,694.85 | 15,601.85 | 7.01% | 13.87% |
LIC OF INDIA | ||||
Individual Single Premium | 2,522.01 | 2,000.19 | 26.09% | 17.91% |
Individual Non Single Premium | 2,628.74 | 3,111.33 | -15.51% | 3.35% |
Group Single Premium | 8,191.29 | 17,601.97 | -53.46% | 6.44% |
Group Non Single Premium | 47.38 | 210.49 | -77.49% | -19.29% |
Group Yearly Renewable Premium | 134.44 | 57.29 | 134.67% | 32.43% |
LIC Premium Flows | 13,523.87 | 22,981.28 | -41.15% | 7.16% |
Data Source: Life Insurance Council (New Business Premiums – NBP figures are ₹ in Crore)
There are 2 quick takeaways from the NBP data for December 2024 and FY25 till date.
Private insurers improved their share of NBP in December 2024 progressively; although it came at the cost of LIC.
LIC SHOWS SHARP FALL IN NUMBER OF POLICIES
In December 2024, the number policies sold by LIC fell -31.6% yoy, even as private players saw their policy sales witness robust growth.
PARTICULARS | Policies (Dec-2024) |
Policies (Dec-2023) |
Growth YOY (%) Dec-24 / Dec-23 |
Growth YOY (%) FY25 / FY24 |
Individual Single Premium | 1,08,696 | 98,980 | 9.82% | 13.28% |
Individual Non Single Premium | 20,12,668 | 25,47,648 | -21.00% | -2.49% |
Group Single Premium | 186 | 269 | -30.86% | 27.43% |
Group Non Single Premium | 376 | 318 | 18.24% | 19.01% |
Group Yearly Renewable Premium | 2,803 | 3,637 | -22.93% | -4.70% |
Grand Total No. of Policies | 21,24,729 | 26,50,852 | -19.85% | -1.79% |
PRIVATE INSURANCE COMPANIES | ||||
Individual Single Premium | 28,935 | 26,559 | 8.95% | 20.54% |
Individual Non Single Premium | 9,31,844 | 9,22,994 | 0.96% | 8.31% |
Group Single Premium | 186 | 216 | -13.89% | 36.95% |
Group Non Single Premium | 28 | 8 | 250.00% | 146.67% |
Group Yearly Renewable Premium | 422 | 468 | -9.83% | 4.19% |
Private Insurer No. of Policies | 9,61,415 | 9,50,245 | 1.18% | 8.69% |
LIC OF INDIA | ||||
Individual Single Premium | 79,761 | 72,421 | 10.14% | 11.17% |
Individual Non Single Premium | 10,80,824 | 16,24,654 | -33.47% | -7.70% |
Group Single Premium | 0 | 53 | -100.00% | -12.58% |
Group Non Single Premium | 348 | 310 | 12.26% | 16.42% |
Group Yearly Renewable Premium | 2,381 | 3,169 | -24.87% | -6.51% |
LIC No. of Policies | 11,63,314 | 17,00,607 | -31.59% | -6.73% |
Data Source: Life Insurance Council (Number of Policies are absolute figures)
Here are some quick takeaways from the data points on insurance for December 2024 in terms of number of policies sold.
Let us now turn to how the 5 largest private life insurers saw NBP growth adding up in December 2024.
NBP TRENDS: KEY PRIVATE LIFE INSURERS BUILD HEFT IN DECEMBER 2024?
In the month of December 2024, private insurers saw 7.01% growth in new business premium (NBP). Here are the big 5 private insurers in terms of NBP.
SBI LIFE INSURANCE COMPANY | Dec-24 NBP (₹ in Crore) |
Dec-23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium | 900.95 | 967.44 | -6.87% |
Individual Non Single Premium | 3,416.21 | 2,927.14 | 16.71% |
Group Single Premium | 915.47 | 644.42 | 42.06% |
Group Non Single Premium | 1.61 | 4.92 | -67.28% |
Group Yearly Renewable Premium | 73.74 | 62.93 | 17.18% |
Total | 5,307.98 | 4,606.85 | 15.22% |
Data Source: Life Insurance Council
With NBP of ₹5,307.98 Crore in December 2024, SBI Life Insurance Company saw 15.22% yoy growth in NBP collections. Stellar growth of 42.06% came from Group Single premium policies; followed by Group Yearly Renewable Policies growing NBP at 17.18%. Let us turn to HDFC Life Insurance.
HDFC LIFE INSURANCE | Dec-24 NBP (₹ in Crore) |
Dec-23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium | 356.41 | 342.21 | 4.15% |
Individual Non Single Premium | 1,281.91 | 1,139.18 | 12.53% |
Group Single Premium | 1,065.02 | 1,345.49 | -20.85% |
Group Non Single Premium | 0.00 | 0.00 | N.A. |
Group Yearly Renewable Premium | 10.16 | 16.02 | -36.58% |
Total | 2,713.49 | 2,842.90 | -4.55% |
Data Source: Life Insurance Council
With NBP of ₹2,713.49 Crore in December 2024, HDFC Life Insurance saw -4.55% contraction in new business premium yoy. The positive growth of 12.53% came from individual non-single premium; while contraction was seen in Group Yearly Renewable and Group Single Premium policies. Let us turn to ICICI Prudential Life Insurance.
ICICI PRUDENTIAL LIFE INSURANCE | Dec-24 NBP (₹ in Crore) |
Dec-23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium | 162.28 | 143.93 | 12.75% |
Individual Non Single Premium | 694.63 | 635.21 | 9.35% |
Group Single Premium | 472.31 | 536.39 | -11.95% |
Group Non Single Premium | 0.00 | 0.00 | N.A. |
Group Yearly Renewable Premium | 226.03 | 181.74 | 24.37% |
Total | 1,555.24 | 1,497.27 | 3.87% |
Data Source: Life Insurance Council
With NBP of ₹1,555.24 Crore in December 2024, ICICI Pru Life Insurance has seen 3.87% growth in new business premium yoy. The significant growth of 24.37% came from group yearly renewable premium policies and individual single premium policies. Group single premium policies saw contraction in NBP. Let us shift to Axis Max Life Insurance Company.
AXIS MAX LIFE INSURANCE | Dec-24 NBP (₹ in Crore) |
Dec-23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium | 266.95 | 262.76 | 1.59% |
Individual Non Single Premium | 862.26 | 773.30 | 11.50% |
Group Single Premium | 114.18 | 137.19 | -16.77% |
Group Non Single Premium | 0.00 | 0.00 | N.A. |
Group Yearly Renewable Premium | 11.13 | 40.68 | -72.64% |
Total | 1,254.51 | 1,213.93 | 3.34% |
Data Source: Life Insurance Council
With NBP of ₹1,254.51 Crore in December 2024, Axis Max Life Insurance has seen 3.34% growth in new business premium yoy. Individual non-single premium showed 11.5%; while group yearly renewable premium and group single premium policies saw NBP contraction. Let us finally turn to Tata AIA Life Insurance.
TATA AIA LIFE INSURANCE | Dec-24 NBP (₹ in Crore) |
Dec-23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium | 81.50 | 65.30 | 24.81% |
Individual Non Single Premium | 1,012.15 | 877.12 | 15.39% |
Group Single Premium | 34.39 | 29.60 | 16.18% |
Group Non Single Premium | 0.17 | 0.39 | -56.41% |
Group Yearly Renewable Premium | 28.78 | 18.81 | 53.00% |
Total | 1,156.99 | 991.21 | 16.73% |
Data Source: Life Insurance Council
With NBP of ₹1,156.99 Crore in December 2024, Tata AIA Life Insurance NBP grew 16.73% yoy. Positive growth was seen in group yearly renewable premium, individual single premium, group single premium, and individual non-single premium policy NBP. However, group non-single premium policies saw contraction in NBP in December 2024.
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