BETTER NBP GROWTH FOR PRIVATE INSURERS IN SEPTEMBER 2024
In the last few months, LIC had been consistently getting the better of private insurers in terms of growth in new business premium (NBP). However, there was a shift in September 2024 as the private insurers got the better of LIC in terms of monthly NBP growth. To be fair, the growth edge was not too high, but it was there, nevertheless. That is not likely to impact the cumulative growth on NBPs for the first 6 months of FY25. That is a more secular trend.
As is the practice each month, the Life Insurance Council released full month data stack of new business premium (NBP) collections for September 2024 and for the cumulative 6 months from April to September of FY25. The news is that after months of lagging LIC in terms of NBP growth, the private insurers have got a small edge in the month of September 2024. However, to compensate for the lower growth in NBP, the LIC has given a big boost to its number of policies sold in September, a metrics on which LIC was trailing the private insurers. In fact, LIC has given a big thrust to growth in number of policies in Sep-24.
DECISIVE SHIFT OF LIFE INSURANCE AWAY FROM TAX SAVING
But, the big story is that there appears to be a quiet, yet decisive shift in the way life insurance is being sold in India. For many years, the simple logic to buy life insurance was to save tax under Section 80C. However, all that changed with the advent of the New Tax Regime (NTR), which became the default tax regime from FY24 onwards. Under the NTR, most of the exemptions (including the exemptions under Section 80C) could be forfeited in lieu of a distinctively lower rate of tax. That was always the intent of the government.
This NTR has been a big hit and has taken away a large part of the ready market for life insurance products. However, it must be said that the Indian insurance industry has adapted reasonably well to the shift by focusing less on the tax shields and more on the financial planning aspects of life insurance. The good news is that life insurance is now being bought as a conscious financial planning strategy, rather than being sold as a low hanging fruit to save income tax. Life insurance has certainly come of age in the last two years.
PRIVATE INSURERS BETTER LIC IN NBP GROWTH IN SEP-24
The table below captures the performance of LIC, private insurers and the overall insurance sector for the month of September 2024 in terms of first year premiums and the yoy growth in premiums over September 2023. Premiums flows, here, refer to first year premiums only.
PARTICULARS |
NBP (Sep-2024) |
NBP (Sep -2023) |
Growth YOY (%) Sep -24 / Sep -23 |
Growth YOY (%) FY24 / FY23 |
Individual Single Premium |
5,141.99 |
4,548.47 |
13.05% |
15.00% |
Individual Non Single Premium |
11,500.11 |
8,504.08 |
35.23% |
20.93% |
Group Single Premium |
17,052.25 |
16,077.93 |
6.06% |
22.10% |
Group Non Single Premium |
115.62 |
260.98 |
-55.70% |
-15.10% |
Group Yearly Renewable Premium |
1,210.31 |
1,324.83 |
-8.64% |
-3.49% |
Grand Total Premium Flows |
35,020.28 |
30,716.29 |
14.01% |
19.47% |
PRIVATE INSURANCE COMPANIES | ||||
Individual Single Premium |
1,908.55 |
2,035.59 |
-6.24% |
7.00% |
Individual Non Single Premium |
7,638.09 |
5,922.33 |
28.97% |
24.45% |
Group Single Premium |
4,265.64 |
3,992.41 |
6.84% |
3.92% |
Group Non Single Premium |
12.49 |
17.92 |
-30.30% |
-5.13% |
Group Yearly Renewable Premium |
826.25 |
621.73 |
32.90% |
-9.64% |
Private Insurer Premium Flows |
14,651.02 |
12,589.97 |
16.37% |
12.06% |
LIC OF INDIA | ||||
Individual Single Premium |
3,233.44 |
2,512.89 |
28.67% |
21.60% |
Individual Non Single Premium |
3,862.02 |
2,581.75 |
49.59% |
13.82% |
Group Single Premium |
12,786.61 |
12,085.52 |
5.80% |
28.81% |
Group Non Single Premium |
103.13 |
243.06 |
-57.57% |
-15.42% |
Group Yearly Renewable Premium |
384.06 |
703.10 |
-45.38% |
22.17% |
LIC Premium Flows |
20,369.26 |
18,126.32 |
12.37% |
24.73% |
Data Source: Life Insurance Council (New Business Premiums – NBP figures are ₹ in Crore)
What do we gather from the data on insurance business for September 2024 in terms of the first year premium collections by private insurers and LIC?
Compared to August 2024, the private insurers have improved on NBP growth and also on NBP share. However, that has not really changed the cumulative NBP story of FY25, which continues to be dominated by LIC.
LIC PROVES ITS METTLE IN GROWTH IN NUMBER OF POLICIES
If new business premiums (NBP) is about fresh money flows into the insurer, the number of policies are about the retail spread as the future funnel of growth. Therefore, if NBP deepens the wallet share, the number of policies widens the client base. For an insurance company, both these business triggers do matter. The table below captures the performance of LIC, private insurers and the overall insurance sector for September 2024 in terms of growth in the number of policies; compared to the base of September 2023.
PARTICULARS |
Policies (Sep -2024) |
Policies (Sep -2023) |
Growth YOY (%) Sep -24 / Sep -23 |
Growth YOY (%) FY24 / FY23 |
Individual Single Premium |
1,49,887 |
1,24,090 |
20.79% |
17.45% |
Individual Non Single Premium |
30,63,667 |
20,83,709 |
47.03% |
13.46% |
Group Single Premium |
253 |
246 |
2.85% |
56.29% |
Group Non Single Premium |
584 |
363 |
60.88% |
19.05% |
Group Yearly Renewable Premium |
3,489 |
3,272 |
6.63% |
3.75% |
Grand Total No. of Policies |
32,17,880 |
22,11,680 |
45.49% |
13.64% |
PRIVATE INSURANCE COMPANIES | ||||
Individual Single Premium |
28,076 |
27,949 |
0.45% |
15.63% |
Individual Non Single Premium |
8,37,646 |
7,01,607 |
19.39% |
13.33% |
Group Single Premium |
224 |
210 |
6.67% |
53.22% |
Group Non Single Premium |
8 |
8 |
0.00% |
77.14% |
Group Yearly Renewable Premium |
493 |
451 |
9.31% |
4.07% |
Private Insurer No. of Policies |
8,66,447 |
7,30,225 |
18.65% |
13.41% |
LIC OF INDIA | ||||
Individual Single Premium |
1,21,811 |
96,141 |
26.70% |
17.97% |
Individual Non Single Premium |
22,26,021 |
13,82,102 |
61.06% |
13.52% |
Group Single Premium |
29 |
36 |
-19.44% |
71.60% |
Group Non Single Premium |
576 |
355 |
62.25% |
18.05% |
Group Yearly Renewable Premium |
2,996 |
2,821 |
6.20% |
3.68% |
LIC No. of Policies |
23,51,433 |
14,81,455 |
58.72% |
13.75% |
Data Source: Life Insurance Council (Number of Policies are absolute figures) Here are some quick takeaways from the data points on insurance for September 2024 in terms of number of policies sold.
Let us now turn to how the 5 largest private life insurers saw NBP growth adding up in the month of September 2024.
NBP TRENDS: KEY PRIVATE LIFE INSURERS BUILD HEFT IN SEPTEMBER 2024?
In the month of September 2024, private insurers saw 16.37% growth in new business premium (NBP), although it was still LIC that made the best of its first mover advantage. In terms of number of policies sold, LIC saw a turnaround in performance, widening its market share lead considerably. In September 2024, a total of 7 private insurers crossed ₹1,000 crore in new business premium (NBP). Here is a look at the top-5 private life insurers, whose NBP accounts for 65.97% of the total NBP collected by private insurers in September 2024. We start with SBI Life Insurance, which emerged the biggest private player by NBP in September 2024.
SBI LIFE INSURANCE COMPANY |
Sep-24 NBP (₹ in Crore) |
Sep-23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium |
694.74 |
638.27 |
8.85% |
Individual Non Single Premium |
1,558.40 |
1,428.03 |
9.13% |
Group Single Premium |
643.45 |
557.21 |
15.48% |
Group Non Single Premium |
0.85 |
4.16 |
-79.57% |
Group Yearly Renewable Premium |
94.33 |
232.75 |
-59.47% |
Total |
2,991.77 |
2,860.42 |
4.59% |
Data Source: Life Insurance Council (Premium figures are ₹ in Crore)
With NBP of ₹2,991.77 Crore in September 2024, SBI Life Insurance saw 4.59% yoy growth in September 2024 NBP collections. The significant growth of 15.48% came from Group single premium policies; followed by individual non-single premium policy NBP growing at 9.13%. The group non-single premium and the group yearly renewable premium NBP contracted by -79.6% and -59.5% respectively in September 2024. Let us turn to HDFC Life Insurance.
HDFC LIFE INSURANCE COMPANY |
Sep-24 NBP (₹ in Crore) |
Sep -23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium |
298.83 |
319.56 |
-6.49% |
Individual Non Single Premium |
1,140.98 |
903.28 |
26.32% |
Group Single Premium |
1,214.73 |
1,212.49 |
0.18% |
Group Non Single Premium |
0.00 |
0.00 |
N.A. |
Group Yearly Renewable Premium |
15.93 |
11.36 |
40.23% |
Total |
2,670.46 |
2,446.68 |
9.15% |
Data Source: Life Insurance Council (Premium figures are ₹ in Crore)
With NBP of ₹2,670.46 Crore in September 2024, HDFC Life Insurance has seen robust 9.15% growth in new business premium yoy. The significant growth of 40.23% came from group yearly renewable premium, followed by individual non-single premium growing at 26.32%. The individual single premium category witnessed contraction of -6.49% in September 2024. Let us turn to ICICI Prudential Life Insurance.
ICICI PRUDENTIAL LIFE INSURANCE |
Sep-24 NBP (₹ in Crore) |
Sep-23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium |
154.67 |
134.60 |
14.91% |
Individual Non Single Premium |
729.91 |
548.73 |
33.02% |
Group Single Premium |
500.72 |
507.83 |
-1.40% |
Group Non Single Premium |
0.00 |
0.00 |
N.A. |
Group Yearly Renewable Premium |
274.59 |
184.98 |
48.44% |
Total |
1,659.90 |
1,376.13 |
20.62% |
Data Source: Life Insurance Council (Premium figures are ₹ in Crore)
With NBP of ₹1,659.90 Crore in September 2024, ICICI Prudential Life Insurance has seen healthy 20.62% growth in new business premium yoy. The significant growth of 48.4% came from group yearly renewable policies followed by individual non-single premium policies NBP growing at 33.0%. The only category that saw contraction of -1.4% in NBP in September 2024 was Group single premium policies. Let us shift focus to Tata AIA Life Insurance.
TATA AIA LIFE INSURANCE |
Sep-24 NBP (₹ in Crore) |
Sep-23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium |
119.03 |
56.34 |
111.27% |
Individual Non Single Premium |
918.40 |
577.08 |
59.15% |
Group Single Premium |
27.41 |
23.03 |
19.02% |
Group Non Single Premium |
0.35 |
0.33 |
6.06% |
Group Yearly Renewable Premium |
146.19 |
36.09 |
305.07% |
Total |
1,211.37 |
692.87 |
74.83% |
Data Source: Life Insurance Council (Premium figures are ₹ in Crore)
With NBP of ₹1,211.37 Crore in September 2024, Tata AIA Life Insurance has seen robust 74.83% growth in new business premium yoy. Group yearly renewable premium policies led the NBP growth at 305.1%, followed by the Individual Single and Individual non-Single policies at 111.3% and 59.2% respectively. There was no NBP contraction visible in any of the categories for Tata AIA Life. Finally, let us shift our focus to Max Life Insurance.
MAX LIFE INSURANCE COMPANY |
Sep-24 NBP (₹ in Crore) |
Sep-23 NBP (₹ in Crore) |
YOY Growth (in %) |
Individual Single Premium |
219.96 |
206.60 |
6.47% |
Individual Non Single Premium |
763.49 |
547.45 |
39.46% |
Group Single Premium |
138.57 |
117.42 |
18.01% |
Group Non Single Premium |
0.00 |
0.00 |
N.A. |
Group Yearly Renewable Premium |
9.41 |
5.56 |
69.24% |
Total |
1,131.42 |
877.03 |
29.01% |
Data Source: Life Insurance Council (Premium figures are ₹ in Crore)
With NBP of ₹1,131.42 Crore in September 2024, Max Life Insurance has seen 29.0% growth in new business premiums yoy. The significant growth of 69.3% and 39.5% came from Group yearly renewable Premium and Individual non-single premium policies respectively. Max life Insurance Company did not see contraction in NBP in any of the categories.
The big story of September 2024 has been the revival of private sector insurers in NBP growth and the big thrust of LIC in growth in number of policies.
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