Saturday, April 10, 2021

Life insurers’ new business premium up 21% in February at Rs 22,425 crore

After tepid progress in January, following two months of consecutive decline, February noticed life insurers, 23 in complete, recording spectacular 21 per cent progress in new enterprise premiums (NBP) to Rs 22,425.21 crore, in contrast with Rs 18,533.19 crore in the identical interval, a yr in the past.

Apparently, the state-owned insurance coverage behemoth — Life Insurance coverage Company (LIC) — has recorded 24 per cent progress in NBP to Rs 12,920.57 crore, in contrast with Rs 10,404.68 crore, in a departure from the pattern seen in different months when LIC’s NBP shrank. In January, LIC’s NBP declined 2 per cent year-on-year (YoY), whereas in December it contracted by 15 per cent YoY. November noticed LIC’s NBP declining by greater than 35 per cent.

Non-public insurers, however, noticed their NBP rising by 16 per cent in February to Rs 9,504.64 crore, in contrast with Rs 8,128.51 crore in the identical interval a yr earlier. NBP is the premium acquired from new insurance policies for a specific yr.

Amongst personal gamers, SBI Life confirmed spectacular progress of greater than 60 per cent, HDFC Life’s NBP grew by 20 per cent, and Max Life additionally had a powerful progress of above 30 per cent. However, ICICI Prudential’s NBP for February de-grew by 19 per cent.

It is very important word that January-March (This autumn) is the best quarter for all times insurers as numerous individuals purchase life insurance coverage insurance policies due to the tax-saving choices it gives.

After witnessing progress in NBP for 4 straight months ranging from July, the NBP of life insurers had fallen in November and December. However, it picked up once more in January, with the NBP of life insurers rising by virtually 4 per cent.

With only a month left for the shut of the present monetary yr, thus far, on a cumulative foundation, life insurers NBP is barely within the inexperienced, with 0.6 per cent progress during the last monetary yr.

To this point, life insurers have earned an NBP to the tune of Rs 2.34 trillion. Whereas the personal insurers are displaying a progress of just about 9 per cent on this time interval, over final yr, LIC remains to be within the purple with its NBP de-growing by 3 per cent.

The life insurance coverage trade suffered a physique blow on the onset of the pandemic and it was evident within the NBP numbers it posted on the finish of Q1FY21. Because of the strict lockdown in place, their NBP contracted 18.5 per cent. But it surely recovered rapidly with the opening up of the economic system and surge in demand for insurance coverage merchandise. Therefore in Q2FY21, the trade reported an increase of 16 per cent in NBP. Nevertheless, in Q3FY21, the trade was within the purple, once more. Consultants have earlier mentioned that the life insurance coverage trade might even see marginal single-digit progress on this fiscal yr.

Pricey Reader,

Enterprise Normal has at all times strived onerous to offer up-to-date data and commentary on developments which are of curiosity to you and have wider political and financial implications for the nation and the world. Your encouragement and fixed suggestions on easy methods to enhance our providing have solely made our resolve and dedication to those beliefs stronger. Even throughout these troublesome instances arising out of Covid-19, we proceed to stay dedicated to retaining you knowledgeable and up to date with credible information, authoritative views and incisive commentary on topical problems with relevance.

We, nevertheless, have a request.

As we battle the financial impression of the pandemic, we want your help much more, in order that we will proceed to give you extra high quality content material. Our subscription mannequin has seen an encouraging response from lots of you, who’ve subscribed to our on-line content material. Extra subscription to our on-line content material can solely assist us obtain the targets of providing you even higher and extra related content material. We consider in free, honest and credible journalism. Your help via extra subscriptions may help us practise the journalism to which we’re dedicated.

Help high quality journalism and subscribe to Enterprise Normal.

Digital Editor

Latest news

Related news


Please enter your comment!
Please enter your name here