New Business Premium Of India’s Life Insurers Drops 3% In December

The new business premium of India’s life insurance industry contracted in December.

The new business or the first-year premium of 24 life insurers fell 3% year-on-year to Rs 24,383.42 crore, according to data from the insurance regulator.

India’s largest life insurer Life Insurance Corp. of India contributed Rs 14,345.70 crore or 58% to the total premium generated during the month, the data showed. That’s a 15% decline over a year ago.

Private sector comprising 23 players registered a 22% growth over a year ago by earning new premium of Rs 10.037.72 crore in December, according to data from the Insurance Regulatory and Development Authority of India.

Among private life insurers, Bajaj Allianz Life’s new business rose the highest by 64.18% year-on-year to Rs 686.80 crore in December 2020.

Aditya Birla Sun Life reported over 61% year-on-year increase in premium collection to Rs 514.04 crore, while India First posted a 54% rise to Rs 240.10 crore.

ICICI Prudential Life Insurance Co.’s new business was at Rs 1,469.45 crore (up 32.11%); HDFC Standard Life Insurance Co. at Rs 1,910.27 crore (up 27%), and Max Life Rs 768.07 crore (up 21%) in December.

The cumulative new business premium from all the insurers during the April-December period of 2020-21 contracted by 1.7% year-on-year to Rs 1.91 lakh crore.