|State-run insurer Life Insurance Corporation of India (LIC) has registered a 41.74% growth in first-year premium collection for the April-September period of the current financial year, outperforming the combined growth rate of all private sector life insurance players put together.|
According to latest data released by the insurance regulator, LIC reported first-year premium of ₹89,980.2 crore, while private sector insurers’ new premium collection grew by 20.88% to ₹35,777.89 crore during the April-September period.
Overall, the insurance industry logged 35.11% growth in premium collection to ₹1.26 lakh crore.
At the end of September, LIC had market share of 71.55% as compared to 68.20% a year ago, while the private sector markets share was 28.45% as compared to 31.80%. HDFC Life, which collected ₹8,007.2 crore first-year premium, had the higher market share with 6.37%, followed by SBI Life with 6.21% market share, and ICICI Prudential Life with 4.1% market share.
A report by Kotak Securities said individual annualised premium equivalent APE declined 3% on year in September as compared to 11-27% on year growth in April-August 2019.
APE refers to 100% of regular premiums and 10% of single premiums collected.
“Overall APE was up 3% y-o-y on the back of stronger group business. ICICI Prudential Life’s APE declined for the third month, albeit at a lower pace,” the report said.