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Life Insurers Report Revenue Growth In November

Both private insurers and the Life Insurance Corp. of India reported growth in business premiums.

<div class="paragraphs"><p>(Source:  Scott Graham/Unsplash)</p></div>
(Source: Scott Graham/Unsplash)

India's life insurers reported revenue growth sequentially and year-on-year in November, supported by a rise in retail and group category premiums.

Both private insurers and the Life Insurance Corp. of India Ltd. reported growth in business premium over November 2021 and October 2022.

The industry’s new business premium stood at Rs 35,459 crore in November, according to provisional data released by the Life Insurance Council. That is 24% higher than the annualised premium equivalent revenue in November 2021.

The year-on-year growth happened despite a 1% year-on-year fall in the number of policies sold in November 2021. However, the annualised premium equivalent was 11% lower than November 2019.

Sequentially, revenues were up 27% over October, coupled with a 6% rise in the number of policies.

Key Highlights

  • LIC's revenue rose 29% over November 2021 to Rs 24,032 crore, aided by growth in group single and non-single category premiums. Even the retail category registered growth. Sequentially, too, the premiums were up 24% over October.

  • The new business premium of private insurers rose 20% year-on-year to Rs 11,427 crore in November, aided by growth in the retail category. Group single and non-single category premiums reported a year-on-year decline. Sequentially, the premiums rose by 30%.

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

HDFC Life Insurance Co. (Including Exide Life Insurance)

  • HDFC Life reported the highest revenue among private peers in November.

  • Revenue rose 43% year-on-year to Rs 2,723 crore. It reported growth across its group policies and retail premium categories, including Exide Life Insurance.

  • Revenue was also up 46% over the previous month.

  • Retail premiums have led the growth for HDFC Life this month.

SBI Life Insurance Co.

  • The new business premium rose 13% year-on-year to Rs 2,642 crore in November.

  • Its retail business reported growth, while group and single premiums saw a decline. However, the premium was 31% higher compared to October.

ICICI Prudential Life Insurance Co.

  • The new business premium stood at Rs 1,265 crore in November—a mere 0.3% growth year-on-year. Its retail business fell year-over-year, while group and single premiums reported growth.

  • Sequentially, it was up 19%.