Life insurers reported 22.2% growth in first year premium (FYP) to Rs 31,001.17 crore in September, prompting market leader and IPO-bound LIC to return to growth after four months.
While LIC posted year-on-year growth in FYP for the second time this fiscal after a strong start in April, for life insurers collectively it was the first two months of growth this year, on the back of reports of an imminent Coming up with an increase in premium.
According to the latest business statement released by IRDAI, for the six months ended September, the FYP of life insurers stood at ₹1,31,981.89 crore, a growth of 5.82% from ₹1,24,727.65 crore in the year-ago period. A growth of 11.55% in FYP last month to ₹18,520.21 crore helped LIC reduce the fall so far in this financial year to 3.3% at ₹85,112.59 crore.
The private players continued to maintain their momentum, reporting a 42.4% growth in FYP for September to ₹12,480.96 crore.
private firm consolidated
For the first half, the premium raised by private players was 27.7% higher at ₹46,869.30 crore. The market share of private players was 35.5%.
Emkay Global Financial Services said the September performance pointed to a long-term trend of gradual shift towards large private players with a strong brand of retail life insurance market. Overall, the market share trend towards large private life insurers continued last month, it added in a report.