Indian Life Insurers' August Revenue Falls As LIC Drags
SBI Life's market share rose 320 basis points, the highest among private peers.
India's life insurers saw a decline in revenue growth in August as compared with the previous year. Life Insurance Corp. reported a 35% decline in new business premiums, even as private insurers reported growth.
The industry's new business premium fell 18% year-on-year to Rs 26,789 crore in August, according to provisional data released by the Life Insurance Council on Thursday. The decline occurred despite a 7% rise in the total number of policies sold. Sequentially, the absolute revenue fell 4%.
On an annualised premium equivalent basis, it was 2% higher than August last year, bringing the single lump-sum premium received at par with the non-single or regular premium received over a period of time. And the retail-weighted received premium was 14% higher than last year.
SBI Life Insurance Co. reported the highest revenue among private listed players and the maximum year-on-year growth in retail-weighted received premium in August. HDFC Life Insurance Co. saw the highest year-on-year growth in overall new business premium.
Private Insurers' Performance
The new business premium of private insurers was Rs 12,496 crore in August, which is 14% higher year-on-year and 0.12% higher sequentially.
The APE was up 13% year-on-year.
The retail-weighted received premium was 21% higher than last year.
Here's How India's Listed Insurers Fared In August:
Life Insurance Corp. Of India
LIC's revenue was Rs 14,293 crore in August.
The new business premium declined 35% over August last year and 7% over July.
The APE fell 11% year-on-year.
However, retail WRP rose 3% over the same period last year.
HDFC Life Insurance Co.
Revenue of the merged HDFC Life (with Exide Life Insurance Co.) was up 23% at Rs 2,699 crore as compared with the same period last year. Sequentially, it rose 34%.
On an APE basis, it rose 12% over August last year.
Retail WRP was 16% higher year-on-year.
SBI Life Insurance Co.
The company reported the highest revenue among its listed peers in August.
SBI Life's new business premium rose 16% to Rs 3,125 crore in August and fell 23% sequentially.
On an overall weighted average basis, it rose 32% over last August.
Retail WRP was up 34% over August 2022, the highest among listed private peers.
ICICI Prudential Life Insurance Co.
The new business premium in August stood at Rs 1,344 crore, a 5% decline year-on-year and an 18% fall over last month.
On a weighted average basis, it fell 16% over last year.
The retail WRP reported growth of 12% over August 2022.
Key Highlights Of Market Share Changes
LIC lost 10% market share over last year based on revenue earned up till August 2023.
SBI Life's market share rose 320 basis points, the highest among private peers.
This was followed by HDFC Life, which reported a 210 basis point increase in market share over last year.
ICICI Prudential's market share rose 60 basis points.