The life insurance sector collected a total premium of a little over Rs 27,000 crore in August, a gain of almost 15 percent when compared on a year-on-year basis. What validates a recovery in the sector is that the strong growth in August compares to an average drop of 12 percent witnessed in the first four months of FY21.
Premiums for private life insurers grew by almost 14 percent in August which compares to an average drop of over 6 percent in the first four months of FY21.
After consistently seeing a drop in premium collection for four months between March and June, the life insurance sector for the first time showed growth in numbers in July. Now, with life insurers putting up a strong show in August as well, signs of normalcy returning to the sector are evident.
HDFC Life Insurance collected a total premium of Rs 1,903 crore in August, registering a growth of almost 45 percent as compared to the same month last year. The insurer recorded a growth of 72 percent in Individual Single-Premium and 65 percent in Group Non-single Premium.
Strong August premium collection for HDFC Life Insurance compares to an average fall of 14 percent which the company witnessed in the first four months of FY21.
The retail Annual Premium Equivalent (APE) for HDFC Life Insurance in the month of August also grew by almost 14 percent. The market share for the insurer in the current financial year has also dropped by almost 3.4 percent.
SBI Life Insurance registered a premium growth of 26 percent in August which compares to an average gain of 10 percent in four months of FY21. The retail Annual Premium Equivalent (APE) for SBI Life Insurance fell by over 14 percent last month. The company saw a very strong growth in its Group Renewable Business.
Loss in market share has been a concern for SBI Life Insurance. Between April and August 2020, the insurers lost market share by 6.8 percent.
Max Life Insurance recorded a premium growth of 19.3 percent in August which compares to an average gain of just a little over 1 percent registered by the company in the first four months of FY21. The retail APE for the company gained by 11 percent on a year-on-year comparison.
The underperformance for ICICI Prudential Life Insurance continued in the month of August as well. The company registered a fall of 14.5 percent in its August premium which compares to an average fall of 26 percent in the first four months of FY21. The company saw a drop of 31 percent in its Individual Non-Single Premium collection.
The retail APE for ICICI Prudential Life also witnessed a drop of 29 percent in the month of August on a year-on-year comparison.
The premium collection for Life Insurance Corporation of India (LIC) in the month of August gained by 15 percent in comparison to a drop of 14 percent in the same month last year. The retail APE for LIC grew just by 2 percent. A 17 percent fall in August in Individual Single Premium was primarily responsible for subdued growth in retail APE for LIC