India’s life insurance industry continued to see growth in new business premiums (NBP) in August for the second straight month, writes The Economic Times. These companies had suffered four consecutive months of business contraction since the lockdown began late March.
NBP is the premium acquired from new policies for a particular year.
The industry recorded a consolidated NBP growth of 15% in August to Rs 27,040 crore, data from Insurance Regulatory and Development Authority (IRDAI) showed.
Growth in August was led by the strong performance of the IPO-bound Life Insurance Corp of India (LIC). The public sector insurer recorded a 15.19% jump in NBP to Rs 19,714.21 crore, the data showed.
Meanwhile, private insurers posted an NBP growth of 13.4% to Rs 7325.6 crore.
Life insurers, 24 in all, had posted a growth of 6.8% in July of 2020. This was after the sector had seen NBP decline 32.6%, 25.4% and 10.5% in April, May and June respectively. The NBP in March too had declined by 32% for the sector, when the nationwide lockdown was first introduced.
Among the listed insurers, HDFC Life, SBI Life and Max Life posted a 44.7%, 26% and 19.3% YoY growth in NBP respectively in August, whereas ICICI Prudential Life Insurance saw a 14.5% decline in new premiums, the data from IRDAI showed.