LIC leads in premium growth, pvt insurers show resilience in June
The total premium collected by LIC was Rs 24,970.82 crore, marking a YoY growth of 21% in June
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Life Insurance Corporation of India (LIC), had a positive performance in June 2023, with a significant increase in premiums collected. The total premium collected by LIC was Rs 24,970.82 crore, marking a YoY growth of 20.96 per cent compared to Rs 20,643.67 crore in June 2022. On the other hand, private life insurers collectively collected a premium of Rs 11,990.94 crore in June 2023, showing a rise of 13.01 per cent from Rs 10,610.89 crore in June 2022, data released by Life Insurance Council reveals.
In terms of individual premiums, LIC experienced a slight increase of 0.14 per cent in June 2023, reaching Rs 4,294.62 crore compared to Rs 4,288.83 crore in June 2022. However, for the three months ending in June 2023, LIC's total premium under the individual category dropped by 4.37 per cent to Rs 10,439.18 crore from Rs 10,916.67 crore. Private life insurers, on the other hand, saw a growth of 11.69 per cent in premiums for June, reaching Rs 6,263.07 crore compared to Rs 5,607.36 crore in the same month last year. On an aggregate basis, the premiums collected by private life insurers for the three months ending in June increased by 8.21 per cent to Rs 15,121.71 crore from Rs 13,974.85 crore.
Regarding group premiums, LIC's collection for June amounted to Rs 20,630.58 crore, representing a growth of 26.39 per cent compared to Rs 16,322.45 crore in June 2022. However, the premiums collected by LIC for the months of April, May, and June combined showed a decline of 7.78 per cent to Rs 34,301.82 crore from Rs 37,195.22 crore. Private life insurers, on the other hand, experienced a 9.75 per cent growth in group premiums for June 2023, reaching Rs 4,794.58 crore compared to Rs 4,368.55 crore in the same month last year. On an aggregate basis, the premiums collected by private life insurers for the three months ending in June grew by 14.49 per cent to Rs 10,717.02 crore from Rs 9,360.73 crore.
The standout performance for LIC in June was in the group yearly renewable premium category, which grew by 40.92 per cent from Rs 32.38 crore to Rs 45.63 crore. On an aggregate basis for the three months ending in June 2023, LIC’s group yearly renewable premium grew by 7.96 per cent to Rs 96.20 crore from Rs 89.11 crore in the same period last year. For the 26 private life insurers, the group yearly renewable premium for June 2023 amounted to Rs 933.30 crore, showing a rise of 46.98 per cent compared to Rs 634.98 crore in June 2022. Collectively, the group premium for private life insurers for the three months ending in April, May, and June 2023 increased by 8.93 per cent to Rs 2,328.94 crore from Rs 2,137.94 crore in the same period last year.
However, LIC's performance in policies and schemes was not as strong, as there was a decline in most categories. In June 2023, LIC's policies and schemes under the individual category fell by 14.61 per cent to 13,01,780 from 15,24,467. Conversely, private life insurers experienced a 5.36 per cent growth in policies and schemes, reaching 6,37,788 from 6,05,353.
For LIC's group premiums under policies and schemes, there was a significant decline of 43.15 per cent to 365 in June compared to 642 in the same month last year. In contrast, the group premiums for private life insurers increased by 6.61 per cent to 129 in June 2023 compared to 121 in the same period last year.
The month of June brought positive news for LIC, with a notable increase in premiums collected across various categories. LIC witnessed a significant YoY growth in total premiums, outperforming private life insurers. The numbers highlight the varying performance of different insurers in the life insurance sector during June, with LIC demonstrating strength in certain areas while facing challenges in others.
