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NBP of LIC and Private Insurers contracts in June 2025

15 Jul 2025 , 11:22 AM

JUNE 2025 – NBP CONTRACTS ACROSS THE BOARD

The growth in NBP (new business premium) was negative for LIC and for private insurers for June 2025. While the NBP of private insurers contracted -2.5%, LIC contracted -3.4%, leading to an overall contraction in NBP of -3.1% for June. For the first quarter of FY26, the NBP has expanded, albeit in single digits only. In terms of number of policies sold, LIC saw a sharp contraction of -14.7% in June 2025, due to contraction in Group Single Premium and individual non-single premium policies. Here is a quick look at June 2025 insurance story.

JUNE 2025 NBP CONTRACTS -3.1%, FY26 GROWS 4.3%

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

PARTICULARS	NBP (Jun-25)	NBP (Jun-24)	Growth YOY (%) Jun-25 / Jun-24	Growth YOY (%) FY26 / FY25
Individual Single Premium	4,661.52	3,823.65	21.91%	11.56%
Individual Non Single Premium	9,058.63	8,310.61	9.00%	4.42%
Group Single Premium	26,038.11	28,711.03	-9.31%	1.38%
Group Non Single Premium	42.63	510.78	-91.65%	-53.68%
Group Yearly Renewable Premium	1,316.25	1,077.62	22.14%	61.17%
Grand Total Premium Flows	41,117.14	42,433.69	-3.10%	4.25%
PRIVATE INSURANCE COMPANIES
Individual Single Premium	1,888.72	1,738.98	8.61%	5.15%
Individual Non Single Premium	6,518.80	5,759.54	13.18%	8.40%
Group Single Premium	4,068.77	5,538.14	-26.53%	-2.00%
Group Non Single Premium	13.07	2.23	486.10%	106.50%
Group Yearly Renewable Premium	1,232.78	1,027.93	19.93%	31.23%
Private Insurer Premium Flows	13,722.14	14,066.82	-2.45%	5.72%
LIC OF INDIA
Individual Single Premium	2,772.81	2,084.67	33.01%	16.93%
Individual Non Single Premium	2,539.82	2,551.07	-0.44%	-4.03%
Group Single Premium	21,969.34	23,172.89	-5.19%	2.28%
Group Non Single Premium	29.56	508.55	-94.19%	-59.04%
Group Yearly Renewable Premium	83.47	49.69	67.98%	414.11%
LIC Premium Flows	27,395.00	28,366.87	-3.43%	3.43%

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

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

Life insurance sector saw yoy contraction in first year premiums of -3.1% in June 2025. Private insurers did tad better, contracting NBP at -2.5% in June 2025, while LIC trailed with NBP contraction of -3.4%. The corresponding figures for cumulative FY26 is marginally in the positive.
Overall premium collections for June 2025 was lower YOY, but higher MOM at ₹41,117 Crore. Private insurers saw their share of NBP falling to 33.4%; compared to 39.6% in May, 38.0% in April, 39.9% in March, and 48.3% in February 2025. The share of LIC was up correspondingly to 66.6% in June 2025; compared to 60.4% in May, 62.0% in April, and 60.1% in March 2025.

On an absolute basis, the new business premiums are higher in June; but still lower than the yoy period. In Q1FY26, private insurers NBP growth at 5.7% is higher than LIC at 3.4%.

LIC WITNESSES SHARP CONTRACTION IN POLICIES SOLD

In terms of number of policies sold, LIC saw a sharp contraction in June, but private insurers showed improved policy sales.

PARTICULARS	Policies (Jun-2025)	Policies (Jun-2024)	Growth YOY (%) Jun-25 / Jun-24	Growth YOY (%) FY26 / FY25
Individual Single Premium	1,13,192	1,04,637	8.18%	-3.10%
Individual Non Single Premium	18,91,019	20,71,029	-8.69%	-10.44%
Group Single Premium	196	308	-36.36%	-13.37%
Group Non Single Premium	392	334	17.37%	-2.69%
Group Yearly Renewable Premium	1,455	2,974	-51.08%	-34.97%
Grand Total No. of Policies	20,06,254	21,79,282	-7.94%	-10.11%
PRIVATE INSURANCE COMPANIES
Individual Single Premium	35,318	24,320	45.22%	10.73%
Individual Non Single Premium	7,20,784	6,89,473	4.54%	-1.25%
Group Single Premium	180	254	-29.13%	-7.94%
Group Non Single Premium	17	5	240.00%	128.00%
Group Yearly Renewable Premium	556	530	4.91%	5.26%
Private Insurer No. of Policies	7,56,855	7,14,582	5.92%	-0.80%
LIC OF INDIA
Individual Single Premium	77,874	80,317	-3.04%	-7.73%
Individual Non Single Premium	11,70,235	13,81,556	-15.30%	-15.16%
Group Single Premium	16	54	-70.37%	-33.33%
Group Non Single Premium	375	329	13.98%	-6.16%
Group Yearly Renewable Premium	899	2,444	-63.22%	-47.32%
LIC No. of Policies	12,49,399	14,64,700	-14.70%	-14.80%

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

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

The overall insurance sector saw a fall in number of policies sold at -7.9% for June 2025. While the number of policies sold by LIC fell by -14.7%, the policy sales by the private players actually expanded by 5.9%.
Overall policies sold for June 2025 were sharply higher MOM at 20.06 Lakhs, but was lower on yoy basis. Private insurers saw their share of number of policies improve marginally to 37.7% in June 2025; compared to 36.1% in May, 36.7% in April, and 28.5% in March 2025. LIC saw its share for June 2025 fall marginally to 62.3%; compared to 63.9%, 63.3%, and 71.5% in the previous three months.

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

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

In June 2025, 4 private insurers saw new business premium (NBP) of over ₹1,000 Crore, with overall NBP falling -2.45% yoy. The top 5 private insurers account for 63.6% of NBP.

SBI LIFE INSURANCE COMPANY	Jun-25 NBP (₹ in Crore)	Jun-24 NBP (₹ in Crore)	YOY Growth (in %)
Individual Single Premium	651.67	604.94	7.72%
Individual Non Single Premium	1,380.42	1,207.15	14.35%
Group Single Premium	501.43	1,123.12	-55.35%
Group Non Single Premium	3.02	0.39	674.36%
Group Yearly Renewable Premium	83.83	54.36	54.21%
Total	2,620.37	2,989.95	-12.36%