Life Insurance - New Business Premium Stumbles In February As Group Premiums Fall Sharply: CareEdge
Individual single premiums decline a tad.
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CareEdge Research Report
The first-year premium of life insurers reported a surprising drop (16.8%) in February 2023 to Rs 22,848 crore breaking the pattern of the last two years when February premiums had been more than January premiums. The YoY decline for the month can be attributed to group premiums (primarily Life Insurance Corporation of India) as well individual single premiums.
Private insurance companies continued their growth momentum. Meanwhile, given the momentum prevalent in the previous period of the year, year-to-date FY23 first-year premium numbers grew by 25.1% versus the 8.4% growth reported in the same period last year.
The year-to-date FY23 growth can continue to be attributed primarily to group single premiums and more specifically to LIC and a low base, which saw subdued levels due to the pandemic-induced (Covid-19 second wave) lockdowns.
Meanwhile, private insurance companies continue to extend their lead in the individual non-singe premium segment.
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