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LIC takes a sharp hit on NBP growth in August 2025

10 Sep 2025 , 02:39 PM

AUGUST 2025 – NBP FALLS SHARPLY FOR LIC IN AUGUST 2025

The growth in NBP (new business premium) was once again under pressure for LIC in August 2025. Although the private insurers showed good growth, overall insurance sector growth in NBP was still negative. While the NBP of private insurers grew 12.01% yoy, LIC saw a sharp yoy contraction in NBP at -17.02%, leading to an overall contraction in NBP of -5.16% for August 2025. For the first 5 months of FY26, NBP expanded 6.01% overall, with LIC growing 3.02% and private insurers 10.84%. For private insurers, the growth was all-round; while for LIC, the positive growth came from Group non-Single premiums, while the other categories contracted. Here is a quick look at August 2025 insurance story.

AUGUST 2025 NBP CONTRACTS -5.16%, FY26 GROWS 6.01%

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

PARTICULARS	NBP (Aug-25)	NBP (Aug-24)	Growth YOY (%) Aug-25 / Aug-24	Growth YOY (%) FY26 / FY25
Individual Single Premium	4,092.04	4,302.58	-4.89%	9.72%
Individual Non Single Premium	9,126.81	9,160.08	-0.36%	4.51%
Group Single Premium	15,303.40	17,894.61	-14.48%	3.34%
Group Non Single Premium	461.97	79.81	478.84%	-22.25%
Group Yearly Renewable Premium	1,974.55	1,207.01	63.59%	67.89%
Grand Total Premium Flows	30,958.77	32,644.09	-5.16%	6.01%
PRIVATE INSURANCE COMPANIES
Individual Single Premium	1,736.57	1,825.71	-4.88%	5.19%
Individual Non Single Premium	6,687.82	6,589.59	1.49%	8.15%
Group Single Premium	5,332.22	4,405.24	21.04%	8.71%
Group Non Single Premium	12.08	9.96	21.29%	68.07%
Group Yearly Renewable Premium	1,167.31	504.49	131.38%	57.40%
Private Insurer Premium Flows	14,936.00	13,334.99	12.01%	10.84%
LIC OF INDIA
Individual Single Premium	2,355.46	2,476.87	-4.90%	13.19%
Individual Non Single Premium	2,439.00	2,570.49	-5.12%	-3.75%
Group Single Premium	9,971.17	13,489.37	-26.08%	1.78%
Group Non Single Premium	449.90	69.85	544.09%	-24.91%
Group Yearly Renewable Premium	807.24	702.52	14.91%	104.05%
LIC Premium Flows	16,022.77	19,309.10	-17.02%	3.02%

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

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

For the month of August 2025, the growth contribution came only from the private insurers, who showed all-round growth in premiums. However, in the case of LIC, only Group non-Single Premiums showed a sharp growth while the remaining categories of life insurance policies witnessed contraction on yoy basis.
The real problem at a macro level was in the overall premium collection in absolute terms. Overall premium collections for August 2025, at ₹30,959 Crore, was sharply lower than the July figure of ₹38,958 Crore. Private insurers saw their share of NBP rising to 48.24% in August 2025; compared to 41.94% in July, 33.4% in June, 39.6% in May, and 38.0% in April 2025. The share of LIC was down correspondingly to 51.76% in August 2025; compared to 58.06% in July, 66.6% in June, 60.4% in May, and 62.0% in April 2025. Private insurers have almost come to the half-way mark in terms of NBP contribution.

On an absolute basis, the new business premiums are lower in August compared to the previous two months; as long as to the year ago period.

LIC STRUGGLES AS NUMBER OF POLICIES CONTRACT SHARPLY IN AUG-25

In terms of number of policies sold, LIC saw a sharp contraction in August 2025, but private insurers managed to close just marginally in the negative.

PARTICULARS	Policies (Aug-2025)	Policies (Aug-2024)	Growth YOY (%) Aug-25 / Aug-24	Growth YOY (%) FY26 / FY25
Individual Single Premium	1,16,387	1,23,155	-5.50%	-3.40%
Individual Non Single Premium	20,28,457	22,66,872	-10.52%	-9.11%
Group Single Premium	268	285	-5.96%	-16.31%
Group Non Single Premium	430	463	-7.13%	-3.82%
Group Yearly Renewable Premium	928	3,232	-71.29%	-51.40%
Grand Total No. of Policies	21,46,470	23,94,007	-10.34%	-8.87%
PRIVATE INSURANCE COMPANIES
Individual Single Premium	32,136	25,738	24.86%	16.43%
Individual Non Single Premium	7,09,863	7,31,248	-2.92%	0.20%
Group Single Premium	210	241	-12.86%	-12.52%
Group Non Single Premium	16	17	-5.88%	83.33%
Group Yearly Renewable Premium	489	534	-8.43%	2.73%
Private Insurer No. of Policies	7,42,714	7,57,778	-1.99%	0.77%
LIC OF INDIA
Individual Single Premium	84,251	97,417	-13.52%	-9.18%
Individual Non Single Premium	13,18,594	15,35,624	-14.13%	-13.73%
Group Single Premium	58	44	31.82%	-31.73%
Group Non Single Premium	414	446	-7.17%	-6.39%
Group Yearly Renewable Premium	439	2,698	-83.73%	-65.18%
LIC No. of Policies	14,03,756	16,36,229	-14.21%	-13.55%

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

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

The overall insurance sector saw a fall in number of policies sold at -10.34% for August 2025. While the number of policies sold by LIC fell by -14.21%, the policy sales by the private players fell by a modest -1.99%.
Overall policies sold for August 2025 were lower MOM at 21.46 Lakhs, and also lower on yoy basis. Private insurers saw their share of number of policies sold fall to 34.6% in August 2025; compared to 35.8% in July, 37.7% in June and 36.1% in May 2025. LIC saw its share of policies sold marginally improve to 65.4% in August 2025.

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

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

In August 2025, 5 private insurers saw new business premium (NBP) of over ₹1,000 Crore, with overall NBP rising 12.01% yoy. The top 5 private insurers account for 72.2% of NBP.

SBI LIFE INSURANCE COMPANY	Aug-25 NBP (₹ in Crore)	Aug-24 NBP (₹ in Crore)	YOY Growth (in %)
Individual Single Premium	667.43	676.74	-1.38%
Individual Non Single Premium	1,460.93	1,525.06	-4.21%
Group Single Premium	1,095.88	419.18	161.43%
Group Non Single Premium	1.26	1.56	-19.23%
Group Yearly Renewable Premium	95.74	81.37	17.66%
Total	3,321.24	2,703.92	22.83%