The life insurance business has posted a strong performance in May 2025 with new business premiums (NBP) rising nearly 13 percent on-year to Rs 30,463 crore compared to Rs 27,034 crore a year ago, even as the number of policies sold during the month fell.
According to data released by the Life Insurance Council on June 9, the combined NBP of all life insurers for the first two months of FY26 - April and May - stood at Rs 52,427 crore, a growth of 10.8 percent compared to the same period last year.
While premium values surged in May, the number of policies sold dropped sharply by 10.4 percent. State-owned Life Insurance Corporation (LIC) saw a steeper fall of 14.6 percent in its policy volumes while private insurers experienced a milder 2 percent on year decline. This shift is widely attributed to regulatory changes implemented in October 2024 which has made group and high-premium products more attractive for insurers.
Private insurers continued to gain ground on LIC in May, collectively posting a 16.6 percent increase in NBP to collect Rs 12,058 crore while LIC’s premium collections rose by 10.3 percent to Rs 18,405 crore. This has resulted in private insurers expand market share to 39.6 percent in May, up from 38 percent in April, with LIC’s share has contracted.
Among the top private insurers, HDFC Life recorded the highest growth at 33 percent, collecting Rs 3,022 crore, bolstered by a 51 percent rise in group single-premium income. SBI Life followed closely with Rs 2,951 crore in premiums, up 25 percent year-on-year, largely due to a dramatic 303 percent rise in group yearly renewable premiums. ICICI Prudential Life posted a 6.8 percent increase in premium income, while Axis Max Life and Bajaj Allianz Life reported mixed performance.
The group insurance segment has emerged as the key growth engine in May, contributing over Rs 19,850 crore which is higher by more than 13 percent from last year. The group business as a whole rose by 18.4 percent, reflecting strong institutional demand and an increasing preference among insurers for stable, upfront payment products with lower administrative costs.
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