After witnessing a drop in premium collection for four straight months, the life insurance sector finally has a reason to cheer.
After witnessing a drop in premium collection for four straight months, the life insurance sector finally has a reason to cheer. The total premium collected by the life insurance sector in July stood at Rs 22,986 crore, a gain of almost 7 percent compared to the same month last year.
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The growth was largely driven by the private life insurance companies which grew by 26 percent, collecting a total premium of Rs 7,815 crore in July.
HDFC Life Insurance collected a total premium of Rs 1,975 crore in July registering a growth of almost 41 percent as compared to the same month last year. The strong premium collection for the insurer was largely driven by a strong performance seen in both individual and group single premium.
The strong growth in premium collection for HDFC Life Insurance in July should also be viewed in comparison to an average fall of 33 percent which the company registered in Q1FY21. The comparison shows early signs of revival in premium collection for the industry and the company.
The retail Annual Premium Equivalent (APE) for HDFC Life Insurance also grew by 12 percent in July.
SBI Life Insurance also registered a premium growth of 42 percent in July which compares with a fall of 3 percent in Q1FY21. The retail Annual Premium Equivalent (APE) for SBI Life Insurance also fell by over 14 percent in July. The company saw very strong growth in its group single and renewable business.
Max Life Insurance recorded a premium growth of 5.6 percent in July which compares to a fall of slightly over 1 percent registered by the company in Q1FY21. The retail APE for the company dropped by 14 percent on a year-on-year comparison.
ICICI Prudential Life Insurance continued its underperformance to its private peers. The company registered a fall of 10 percent in its July premium collection which compares to an average fall of 33 percent in Q1FY21. The company saw a 38 percent drop in its non-single premium and a 55 percent drop in its group single premium. The retail APE for ICICI Prudential Life also witnessed a drop of over 36 percent in July on a year-on-year comparison.
Life Insurance Corporation of India (LIC) saw its total premium in July dropping by a percent whereas the insurance behemoth’s APE gained by 10 percent in comparison in the same month last year. The APE growth for the corporation was led by 63 percent growth in its single premium.
First Published: IST