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LIC shows some new business traction in April 2025

14 May 2025 , 10:13 AM

APRIL 2025 – LIC GETS UPPER HAND IN NBP GROWTH

In March, LIC saw a turnaround from yoy NBP contraction to NBP expansion. In April, LIC managed to grow its new business premiums (NBP) at a faster clip than private insurers. This cannot entirely be a legitimate comparison since April is normally on a low base, especially after the highs of March. Overall, new business premium (NBP) expanded by 8.4% in April 2025. For the month of April, the NBP of private insurers grew at 6.1%, while LIC did much better at 9.9%. What about number of policies sold? Here again LIC saw contraction of -15.3%, while in the case of private insurers, the contraction was just -9.5%. Overall, the number of policies sold in April contracted by -13.2%. For FY26, obviously, there are not cumulative growth figures applicable, with only one-month data available.

APRIL 2025 NBP GROWS 8.4%, ALBEIT ON A SMALL BASE

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

PARTICULARS	NBP (Apr-2025)	NBP (Apr-2024)	Growth YOY (%) Apr-25 / Apr-24	Growth YOY (%) FY26 / FY25
Individual Single Premium	2,690.47	2,575.30	4.47%	4.47%
Individual Non Single Premium	5,234.34	5,247.51	-0.25%	-0.25%
Group Single Premium	13,138.86	11,715.42	12.15%	12.15%
Group Non Single Premium	44.02	131.32	-66.48%	-66.48%
Group Yearly Renewable Premium	858.04	589.31	45.60%	45.60%
Grand Total Premium Flows	21,965.73	20,258.86	8.43%	8.43%
PRIVATE INSURANCE COMPANIES
Individual Single Premium	1,227.66	1,175.85	4.41%	4.41%
Individual Non Single Premium	3,536.28	3,471.49	1.87%	1.87%
Group Single Premium	2,773.80	2,695.21	2.92%	2.92%
Group Non Single Premium	6.54	10.20	-35.88%	-35.88%
Group Yearly Renewable Premium	810.82	522.48	55.19%	55.18%
Private Insurer Premium Flows	8,355.10	7,875.22	6.09%	6.09%
LIC OF INDIA
Individual Single Premium	1,462.81	1,399.45	4.53%	4.53%
Individual Non Single Premium	1,698.06	1,776.02	-4.39%	-4.39%
Group Single Premium	10,365.06	9,020.22	14.91%	14.91%
Group Non Single Premium	37.48	121.12	-69.06%	-69.06%
Group Yearly Renewable Premium	47.22	66.83	-29.34%	-29.34%
LIC Premium Flows	13,610.63	12,383.64	9.91%	9.91%

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

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

Life insurance sector saw yoy growth in first year premiums of 8.4% in April 2025. LIC did better, growing NBP at 9.9% in April 2025, while LIC trailed with NBP growth of 6.1%. The rate of growth is better than March, but then April is always on a much lower base.
Overall premium collections for April 2025 was higher YOY at ₹21,966 Crore. Here are the respective contributions. Private insurers saw their share of NBP falling to 38.0% in April 2025; compared to 39.9% in March, 48.3% in February, 47.1% in January, and 55.5% in December 2024. The share of LIC improved correspondingly to 62.0% in April; compared to 60.1% in March, 51.7% in February and 52.9% in January 2025.

The new business premiums in April were about a third of March, which is the normal pattern in most years. In FY25, private insurers stole a march over LIC. It remains to be seen if LIC is able to act different and put up a good show in FY26.

LIC AGAIN SEES 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 (%) Apr-25 / Apr-24	Growth YOY (%) FY26 / FY25
Individual Single Premium	60,119	64,024	-6.10%	-6.10%
Individual Non Single Premium	10,83,929	12,54,730	-13.61%	-13.61%
Group Single Premium	171	154	11.04%	11.04%
Group Non Single Premium	202	275	-26.55%	-26.55%
Group Yearly Renewable Premium	1,571	1,687	-6.88%	-6.88%
Grand Total No. of Policies	11,45,992	13,20,870	-13.24%	-13.24%
PRIVATE INSURANCE COMPANIES
Individual Single Premium	18,195	20,438	-10.97%	-10.97%
Individual Non Single Premium	4,01,451	4,43,462	-9.47%	-9.47%
Group Single Premium	145	114	27.19%	27.19%
Group Non Single Premium	15	10	50.00%	50.00%
Group Yearly Renewable Premium	615	567	8.47%	8.47%
Private Insurer No. of Policies	4,20,421	4,64,591	-9.51%	-9.51%
LIC OF INDIA
Individual Single Premium	41,924	43,586	-3.81%	-3.81%
Individual Non Single Premium	6,82,478	8,11,268	-15.88%	-15.88%
Group Single Premium	26	40	-35.00%	-35.00%
Group Non Single Premium	187	265	-29.43%	-29.43%
Group Yearly Renewable Premium	956	1,120	-14.64%	-14.64%
LIC No. of Policies	7,25,571	8,56,279	-15.26%	-15.26%

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

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

The overall insurance sector saw a fall in number of policies sold at -13.2% for April 2025. While the number of policies sold by LIC fell by -15.3%, the policy sales by the private players also fell by -9.5%.
Overall policies sold for April 2025 were sharply lower MOM at 11.46 Lakhs, and obviously was lower yoy too. Private insurers saw their share of number of policies bounce to 36.7%; compared to 28.5% and 38.2% in the last 2 months. LIC saw its share for April 2025 fall to 63.3%; compared to 71.5% and 61.8% in previous 2 months.

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

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

In April 2025, only 3 private insurers saw new business premium (NBP) of over ₹1,000 Crore, with overall growth at 6.1% yoy. The top 5 private insurers account for 71.6% of NBP.

HDFC LIFE INSURANCE COMPANY	Apr-25 NBP (₹ in Crore)	Apr-24 NBP (₹ in Crore)	YOY Growth (in %)
Individual Single Premium	249.50	226.17	10.31%
Individual Non Single Premium	606.58	588.77	3.02%
Group Single Premium	1,053.66	745.38	41.36%
Group Non Single Premium	0.00	0.00	N.A.
Group Yearly Renewable Premium	33.49	14.86	125.39%
Total	1,943.22	1,575.17	23.37%