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LIC NBP continues to see contraction in December 2024

14 Jan 2025 , 02:27 PM

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.

  • The life insurance sector saw yoy contraction in first year premiums of -21.68% in December 2024. Private insurers dominated NBP growth in December 2024 at 7.01%, while LIC trailed with NBP contracting -41.15%. Even on a cumulative basis, LIC NBP growth at 7.16% lagged the 9.91% growth shown by private insurers.
  • Overall premium collections for December 2024 it was higher MOM at ₹30,219 Crore. What were the respective contributions of LIC and the private insurers? Private insurers saw their share of NBP rise to 55.5% in December 2024; compared to 53.56% in November, 43.55% in October, and 41.84% in September. Obviously, the share of LIC has fallen in tandem to the rise in share of private insurers.

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.

  • The overall insurance sector saw a sharp fall in number of policies sold at -19.85% for December 2024. While the number of policies sold by LIC fell by -31.59%, the policy sales by the private players was flat to positive at 1.18%. Cumulative policies sold by LIC in FY25 contracted by -6.73%.
  • If you look at overall policies sold for December 2024 at 21.25 Lakh policies, the contributions of LIC and private insurers have diverged. Private insurers saw their share of number of policies fall to 45.25%, while LIC saw its share for December improve to 55.75%.

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.

Related Tags

  • Insurance
  • IRDA
  • LIC
  • LifeInsurance
  • LifeInsuranceCorp
  • PrivateInsurers
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