LIC group business sees 39% growth in premium collection in FY20
On the claims front, LIC settled 20.3 million maturity and money back claims and annuities.
April 27, 2020 / 09:46 PM IST
Life Insurance Corporation of India (LIC) saw a 39 percent year-on-year (YoY) growth in premium for its group business at Rs 1.27 lakh crore for FY20. Its market share in the group business rose to 80.54 percent as against 77.94 percent in the year-ago period.
Moneycontrol had earlier reported about LIC beating the private insurers as far as new business premium growth is concerned.
In a statement, LIC said individual new business premium stood at Rs 51,227 crore where the insurer sold 21.9 million policies. Comparative figures for the previous year were not available.
The life insurer collected single premium of Rs 21,967 crore and non-single premium of Rs 29,260 crore.
Overall, the country’s largest insurer saw a 25.2 percent growth in new premium to Rs 1.78 lakh crore. However, for March, LIC saw a 31.1 percent decline in first year premium to Rs 17,066.57 crore.
LIC’s composite market share in number of policies and first year premium at the end of March was 75.9 percent and 68.74 percent. This was a 1.19 percent and 2.5 percent increase in the number of policies and first year premium, respectively.
On the claims front, LIC settled 20.3 million maturity and money back claims and annuities. It also settled 750,000 death claims. Annuity payments due in March and April have also been settled on due dates.
Novel coronavirus (COVID-19) has led to insurance companies operating offices with only skeletal staff. Agents and banks, which are the two pillars of life insurance distribution, are impacted due to the lockdown.
Life insurance companies saw a 32.2 percent year-on-year (YoY) decrease in new premium collection to Rs 25,409.30 crore in March amid the coronavirus pandemic leading to a lockdown across the country. However, for FY20, the life insurers saw a 20.6 percent YoY increase in first year premiums at Rs 2.58 lakh crore.