The Indian life insurance sector made a stellar comeback after what largely has been a disappointing first half. According to the data from Life Insurance Council, the life insurance sector grew over 26 percent in the month of September. Private life insurance space also grew at an impressive rate of 20 percent.
The recovery has helped the life insurance sector offset almost all the damage it took in the period between March to June 2020. With the strong September performance, private life insurance has turned premium positive for H1FY21.
Life Insurance Corporation (LIC) added Rs 16,600 crore to its premium income in September. The premium addition by LIC grew by slightly over 30 percent. The Retail Annual Premium Equivalent (APE) for LIC also showed a growth of almost 5 percent in September.
APE is the sum of annualised first-year premiums on regular premium policies and 10 percent of single premiums written by insurance companies.
Premium collected by LIC in H1FY21 is just short of 2 percent of the premium which is collected last year in the same period.
HDFC Life Insurance outperformed its peers by a significant margin. The insurer managed to grow its premium by over 55 percent in September which compares to an average drop of 2.5 percent in the first five months of FY21.
Retail APE for HDFC Life Insurance also grew by over 43 percent in the month of September. Finally, the insurer has also turned premium positive for H1FY21.
September premium for ICICI Prudential Life Insurance and Max Life Insurance grew by 30 percent and 21 percent respectively. ICICI Prudential life had to face some disappointment on the APE front which fell by 24 percent whereas APE growth for Max Life stood at 16 percent in September.