Private Life Insurers Outpace LIC Growth In December

Private life insurers outpaced Life Insurance Corporation of India on revenue growth in December. SBI Life Insurance Co. reported the highest revenues among private peers and the strongest growth among listed peers last month.

The industry’s new business premium stood at Rs 26,838 crore in December, according to provisional data released by the Life Insurance Council—a 12% year-on-year increase and 11% in the pre-pandemic month of December 2019 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 an 8% fall in the total number of policies sold.

Sequentially, while the absolute revenues were down 24% from Rs 36,459 crore in November, the annualised premium equivalent/weighted average was up 14% over November, coupled with a 22% rise in the number of policies.

• The new business premium of private insurers was Rs 14,980 crore in December. This was 16% higher year-on-year and up 40% sequentially in APE terms.

• LIC's revenue was Rs 11,859 crore. Its APE rose 5% over December last year but fell 18% over November.

• Total revenue of life insurers, at Rs 2.7 lakh crore, was up 23% over a year earlier in APE terms.

• LIC outpaced its private peers, growing 27% to a revenue of Rs 1.8 lakh crore, while the private insurers' top line was Rs 93,189 crore, up 20% in APE terms.

How India’s listed private insurers fared in December 2022:

• Revenue stood at Rs 2,753 crore in December. This was up 15% year-on-year and 27% over the previous month on a weighted average basis.

• The new business premium for the quarter ended December was Rs 7,432 crore. This was up 15% year-on-year and 13% sequentially.

• The reported revenue of Rs 18,884 crore was 12% higher in the nine months ended December as compared to a year ago.

• The company reported the highest revenue among private peers this month.

• New business premiums were at Rs 3,816 crore in December. There was a 31% growth in the APE year-on-year and a 68% jump over November.

• The new business premium rose 19% year-on-year and surged 39% sequentially to Rs 8,423 crore in the quarter ended December.

• For the nine months ended December 2022, the revenue rose 21% to Rs 21,510 crore.

• The new business premium stood at Rs 1,455 crore in December. This rose 12% year-on-year and 15% over the previous month in APE terms.

• Quarterly revenue rose 5% over a year earlier but fell 11% sequentially in APE terms. Revenues stood at Rs 3,928 crore in the quarter ended December.

• Premium was up 9% on an APE basis in the first nine months of FY23, at Rs 11,287 crore.