Indian Life Insurers' August Revenue Falls As LIC Drags

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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.