LIC DOES BETTER IN A ROBUST JUNE 2024
The Life Insurance Council released the full month data stack in terms of new business premium (NBP) collections for June 2024 and for the cumulative first quarter of FY25. The news is that while the private sector insurance companies have shown a smart rebound in the new business premium (NBP) collections in June 2024, it is the LIC that continues to dominate the first quarter of FY25 in terms of NBP growth. Apart from the NBP growth data, the Life Insurance Council has also put out data on the growth in number of policies. On this measure, LIC has done better than the private insurers in June 2024, again a reversal of the trend in the last few months. So, it has been win some; lose some. The private insurers have gained in terms of growth in new business premiums (NBP) in June 2024, but LIC has done marginally better in terms of growth in total number of policies sold.
We now have cumulative data for the first quarter of FY25, so it becomes a lot more meaningful, in terms of its predictive powers. Apart from the NBP data, the Life Insurance Council has also released data on the number of policies sold by individual insurance companies as well as by private insurers overall. Apart from monthly numbers and yoy comparison, the data of cumulative performance of private insurers and LIC for fiscal year FY25 (Apr-Jun) is also provided. Here is the gist. LIC has done better cumulatively for FY25 on NBP growth and on growth in number of policies sold in June 2024. On the other hand, private insurers have done better on NBP growth for June 2024 and in terms of number of policies growth, they have dong better on cumulative FY25 basis.
IT WAS MORE OF A MIXED STORY IN JUNE 2024
The table below captures the performance of LIC, private insurers and the overall insurance sector for the month of June 2024 in terms of first year premiums and the yoy growth in premiums over June 2023. Premiums flows, here, refer to first year premiums only.
PARTICULARS | NBP (Jun-2024) |
NBP (Jun-2023) |
Growth YOY (%) Jun-24 / Jun-23 |
Growth YOY (%) FY24 / FY23 |
Individual Single Premium | 3,823.65 | 3,609.40 | 5.94% | 14.87% |
Individual Non Single Premium | 8,310.61 | 6,948.27 | 19.61% | 19.92% |
Group Single Premium | 28,711.03 | 25,299.33 | 13.49% | 27.84% |
Group Non Single Premium | 510.78 | 125.83 | 305.93% | -12.73% |
Group Yearly Renewable Premium | 1,077.62 | 978.92 | 10.08% | -5.34% |
Grand Total Premium Flows | 42,433.69 | 36,961.76 | 14.80% | 22.91% |
PRIVATE INSURANCE COMPANIES | ||||
Individual Single Premium | 1,738.98 | 1,558.30 | 11.59% | 13.37% |
Individual Non Single Premium | 5,759.54 | 4,704.77 | 22.42% | 24.19% |
Group Single Premium | 5,538.14 | 4,788.42 | 15.66% | 10.19% |
Group Non Single Premium | 2.23 | 6.16 | -63.80% | 45.03% |
Group Yearly Renewable Premium | 1,027.93 | 933.30 | 10.14% | -9.14% |
Private Insurer Premium Flows | 14,066.82 | 11,990.94 | 17.31% | 14.62% |
LIC OF INDIA | ||||
Individual Single Premium | 2,084.67 | 2,051.11 | 1.64% | 16.16% |
Individual Non Single Premium | 2,551.07 | 2,243.51 | 13.71% | 11.78% |
Group Single Premium | 23,172.89 | 20,510.91 | 12.98% | 33.49% |
Group Non Single Premium | 508.55 | 119.67 | 324.96% | -13.88% |
Group Yearly Renewable Premium | 49.69 | 45.63 | 8.90% | 86.62% |
LIC Premium Flows | 28,366.87 | 24,970.82 | 13.60% | 28.11% |
Data Source: Life Insurance Council (New Business Premiums – NBP figures are ₹ in Crore)
What do we read from the data on insurance business for June 2024 in terms of the first year premium collections by insurance companies?
The single-minded focus of LIC on improving its NBP appears to have worked well in the last 6 months. More importantly, even the better performance in June 2024 by the private insurers in terms of NBP growth is more due to the base effect, as LIC has actually built its NBP share in June 2024 to a large extent.
LIC BETTERS PRIVATE INSURERS IN POLICIES SOLD IN JUNE 2024
If new business premiums (NBP) is about fresh money flows into the insurer, the number of policies are about the retail spread and the future funnel of growth. NBP deepens the wallet share while number of policies widens the client base. The table below captures the performance of LIC, private insurers and the overall insurance sector for the month of June 2024 in terms of growth in the number of policies; compared to the base of June 2023.
PARTICULARS | Policies (Jun-2024) |
Policies (Jun-2023) |
Growth YOY (%) Jun-24 / Jun-23 |
Growth YOY (%) FY24 / FY23 |
Individual Single Premium | 1,04,637 | 97,233 | 7.61% | 16.07% |
Individual Non Single Premium | 20,71,029 | 18,42,335 | 12.41% | 11.69% |
Group Single Premium | 308 | 147 | 109.52% | 77.57% |
Group Non Single Premium | 334 | 347 | -3.75% | -1.43% |
Group Yearly Renewable Premium | 2,974 | 3,467 | -14.22% | 3.97% |
Grand Total No. of Policies | 21,79,282 | 19,43,529 | 12.13% | 11.89% |
PRIVATE INSURANCE COMPANIES | ||||
Individual Single Premium | 24,320 | 20,499 | 18.64% | 21.28% |
Individual Non Single Premium | 6,89,473 | 6,17,289 | 11.69% | 13.76% |
Group Single Premium | 254 | 121 | 109.92% | 67.94% |
Group Non Single Premium | 5 | 8 | -37.50% | -7.41% |
Group Yearly Renewable Premium | 530 | 514 | 3.11% | 4.04% |
Private Insurer No. of Policies | 7,14,582 | 6,38,431 | 11.93% | 14.02% |
LIC OF INDIA | ||||
Individual Single Premium | 80,317 | 76,734 | 4.67% | 14.42% |
Individual Non Single Premium | 13,81,556 | 12,25,046 | 12.78% | 10.66% |
Group Single Premium | 54 | 26 | 107.69% | 125.00% |
Group Non Single Premium | 329 | 339 | -2.95% | -1.26% |
Group Yearly Renewable Premium | 2,444 | 2,953 | -17.24% | 3.95% |
LIC No. of Policies | 14,64,700 | 13,05,098 | 12.23% | 10.85% |
Data Source: Life Insurance Council (Number of Policies are absolute figures)
Here are some quick takeaways from the data points on insurance for June 2024 in terms of number of policies sold.
Let us now turn to how the five largest private life insurers saw NBP growth adding up in the month of June 2024.
NBP TRENDS: KEY PRIVATE LIFE INSURERS BUILD HEFT IN JUNE 2024?
In the month of June 2024, private insurers saw better growth in new business premium (NBP) compared to LIC; although it was on a lower base. LIC still improved its market share of NBP premiums in June. Here is a look at the 5 major private life insurers, whose NBP accounts for 68.2% of the total NBP collected by private insurers in June 2024. Let us begin with SBI Life Insurance.
SBI LIFE INSURANCE COMPANY | Jun-24 NBP (₹ in Crore) |
Jun-23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium | 604.94 | 579.33 | 4.42% |
Individual Non Single Premium | 1,207.15 | 1,013.44 | 19.11% |
Group Single Premium | 1,123.12 | 780.67 | 43.87% |
Group Non Single Premium | 0.39 | 2.20 | -82.27% |
Group Yearly Renewable Premium | 54.36 | 79.07 | -31.25% |
Total | 2,989.95 | 2,454.71 | 21.80% |
Data Source: Life Insurance Council (Premium figures are ₹ in Crore)
With NBP of ₹2,959.95 Crore in June 2024, SBI Life Insurance saw 21.8% yoy growth in June 2024. The significant growth of 43.9% came from Group single premium policies followed by individual non-single premium policy NBP growing at 19.1%. The group non-single category witnessed contraction of -82.3% in June 2024 while group yearly renewable premium NBP contracted by -31.3% in June 2024. Let us turn to HDFC Life Insurance.
HDFC LIFE INSURANCE COMPANY | Jun-24 NBP (₹ in Crore) |
Jun-23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium | 367.50 | 325.75 | 12.82% |
Individual Non Single Premium | 999.13 | 741.36 | 34.77% |
Group Single Premium | 1,301.34 | 1,391.44 | -6.48% |
Group Non Single Premium | 0.00 | 0.00 | N.A |
Group Yearly Renewable Premium | 26.32 | 29.08 | -9.49% |
Total | 2,694.29 | 2,487.63 | 8.31% |
Data Source: Life Insurance Council (Premium figures are ₹ in Crore)
With NBP of ₹2,694.29 Crore in June 2024, HDFC Life Insurance has seen robust 8.31% growth in new business premium yoy. The significant growth of 34.8% came from individual non-single premium policies followed by individual single premium policies at 12.8%. The group yearly renewable category witnessed contraction of -9.5% in June 2024. Let us shift to ICICI Prudential Life Insurance.
ICICI PRUDENTIAL LIFE INSURANCE | Jun-24 NBP (₹ in Crore) |
Jun-23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium | 138.93 | 160.20 | -13.28% |
Individual Non Single Premium | 601.47 | 465.51 | 29.21% |
Group Single Premium | 502.63 | 390.62 | 28.67% |
Group Non Single Premium | 0.00 | 0.00 | N.A |
Group Yearly Renewable Premium | 267.87 | 307.82 | -12.98% |
Total | 1,510.90 | 1,324.16 | 14.10% |
Data Source: Life Insurance Council (Premium figures are ₹ in Crore)
With NBP of ₹1,510.90 Crore in June 2024, ICICI Prudential Life Insurance has seen 14.10% growth in new business premium yoy. The significant growth of 29.2% came from Individual non-single premium policies followed by Group single premium policies NBP growing at 28.7%. The growth in other categories saw contraction in NBP premiums collected. Let us now move to Aditya Birla Life Insurance.
ADITYA BIRLA LIFE INSURANCE | Jun-24 NBP (₹ in Crore) |
Jun-23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium | 61.33 | 26.65 | 130.13% |
Individual Non Single Premium | 275.86 | 228.23 | 20.87% |
Group Single Premium | 950.93 | 509.44 | 86.66% |
Group Non Single Premium | 0.79 | 0.33 | 139.39% |
Group Yearly Renewable Premium | 22.63 | 7.82 | 189.39% |
Total | 1,311.56 | 772.47 | 69.79% |
Data Source: Life Insurance Council (Premium figures are ₹ in Crore)
With NBP of ₹1,311.56 Crore in June 2024, Aditya Birla Life Insurance has seen robust 69.8% growth in new business premium yoy. Group yearly renewable premiums grew 189.4%, Group non-single premiums grew 139.4%, and Individual single premiums grew at 130.1%; with some on a relatively low base. All the categories of policies showed a robust expansion in NBP during the month of June 2024 for Aditya Birla Life Insurance. Let us finally turn to Bajaj Allianz Life Insurance.
BAJAJ ALLIANZ LIFE INSURANCE | Jun-24 NBP (₹ in Crore) |
Jun-23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium | 77.82 | 57.14 | 36.19% |
Individual Non Single Premium | 536.37 | 396.76 | 35.19% |
Group Single Premium | 415.11 | 371.20 | 11.83% |
Group Non Single Premium | 0.00 | 0.00 | N.A |
Group Yearly Renewable Premium | 53.15 | 62.21 | -14.56% |
Total | 1,082.45 | 887.31 | 21.99% |
Data Source: Life Insurance Council (Premium figures are ₹ in Crore)
With NBP of ₹1,082.45 Crore in June 2024, Bajaj Allianz Life Insurance has seen 22% growth in new business premium yoy. The significant growth of 36.2% and 35.2% came from Individual single premium policies and individual non-single premium policies respectively. Bajaj Allianz Life saw -14.6% contraction in group yearly renewable premium policies.
The big story of June 2024 is that LIC has consolidated its leadership position and, despite lower NBP growth, it has garnered a bigger share of NBP in June 2024.
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