Private Firms Outpace LIC As Life Insurers' Revenue Rises In January

Private life insurers outpaced Life Insurance Corp. of India Ltd. on year-on-year revenue growth in January, with SBI Life Insurance Co. reporting the highest revenue among private peers.

The industry's new business premium in January stood at Rs 26,424 crore, according to provisional data released by the Life Insurance Council.

It's a 14% year-on-year increase and 0.44% rise over January 2020 in the annualised premium equivalent, bringing the single lump-sum premiums received at par with non-single or regular premiums received over a period of time.

The year-on-year growth came despite a 9% fall in the total number of policies sold.

Sequentially, the absolute revenue was down 2% from Rs 26,838 crore in December. The annualised premium equivalent or the weighted average was down 18% over December, coupled with a 8% decline in the number of policies.

• The new business premium of private insurers was Rs 11,122 crore in January. This was 18% higher year-on-year, while it fell 27% sequentially in APE terms.

• LIC's revenue was Rs 15,302 crore. Its APE rose 8% over January last year and 1% over December.

Here's how India’s listed private insurers fared in January:

• Revenue rose 16% year-on-year to Rs 2,350 crore on a weighted average basis. It reported growth in retail premium and group single categories.

• Revenue fell 21% over the previous month.

• SBI Life Insurance Co. reported the highest revenue among private peers in January.

• The new business premium rose 10% year-on-year to Rs 2,572 crore in January on an APE basis.

• Its retail and group businesses reported growth, except group non-single premiums that saw a decline.

• Sequentially, however, the premium fell 43% on an APE basis.

• The new business premium in January stood at Rs 1,439 crore—a 20% growth year-on-year on an APE basis. Its retail single business fell year-over-year.

• Sequentially, it was up 4% on a weighted average basis.