Private sector insurers saw a strong growth in market share
The annualised premium equivalent (APE) of private sector life insurers saw a 28 percent year-on-year (YoY) growth in May.
Data from the Insurance Regulatory and Development Authority of India (IRDAI) showed that the life insurance industry collected Rs 28,395.90 in first-year premiums in April and May, a 41.15 percent growth over the previous year.
Deutsche Bank in a recent research report said it does not expect the private sector to sustain this growth momentum going forward.
As per IRDAI data, SBI Life Insurance, ICICI Prudential Life Insurance and HDFC Life Insurance posted a 6.5 percent, 4.7 percent and 9.2 percent YoY growth in their first-year premium collection.
Kotak Institutional Equities in a recent report said May was a strong month for most private sector players. Overall, it said that while inflows to equity mutual funds were better month-on-month (MoM), they were broadly muted YoY. Against this backdrop, it feels sustenance of such a high growth in inflows is crucial.
First-year premiums of private life insurers rose to Rs 9,631.27 crore in the first two months of FY20, a growth of 46.9 percent over the previous year. Life Insurance Corporation of India (LIC) saw a 38.4 percent growth in first-year premium to Rs 18,764.63 crore.
Jefferies in a recent report on insurance companies said business growth has been strong across segments. It added that the protection and annuity mix is inching up, even as other private players gain market share from LIC in retail savings.General insurers post 15 percent growth in premium collectionNon-life insurance companies collected a gross direct premium of Rs 28,126.62 crore in April and May, up 15.3 percent YoY.
Standalone health insurers reported a 47.74 percent YoY growth in premium collection to Rs 1,871.80 crore in April and May.With respect to market share, New India Assurance had a market share of 16.8 percent, followed by ICICI Lombard General Insurance at 9.35 percent.