SBI Life surpasses LIC in regular premium policies for the first time in December 2024

SBI Life recorded a 16 percent growth in individual APE for December, despite a high base from the previous year.

SBI Life Insurance outperformed Life Insurance Corporation of India (LIC) in regular premium policies in December 2024. This marks the first time SBI Life has recorded higher premiums than LIC in this segment.

SBI Life collected Rs 3,416 crore from new individual non-single premium policies, a 16.7 percent increase compared to December 2023. In contrast, LIC’s collections in the same segment fell to Rs 2,628 crore, a 15 percent drop from Rs 3,111 crore last year.

SBI Life recorded a 16 percent growth in individual APE for December, despite a high base from the previous year. However, its 5-year growth rate in individual APE was slightly lower than HDFC Life. The company’s stock is currently trading at a P/EV ratio of 1.8x/1.5x for FY26E/FY27E, with analysts maintaining a “buy” rating and a target price of Rs 1,980.

SBI Life continued its upward trajectory with a 15 percent rise in premiums, totaling Rs 5,307 crore in December 2024. This helped increase its market share to 17.5 percent. From April to December 2024, SBI Life held a 9.5 percent market share, ahead of HDFC Life at 8.2 percent and ICICI Prudential Life at 5.5 percent.

Private life insurers showed strong growth, with a collective 11.4 percent rise in individual annual premium equivalent (APE), while LIC saw a sharp 13 percent decline. December’s growth was partly attributed to adjustments in the industry following new regulations on surrender values.

LIC's premiums fell drastically in December 2024, dropping over 40 percent compared to Rs 22,981 crore in December 2023. The most significant decline was seen in group single premium policies, which plummeted to Rs 8,191 crore from Rs 17,601 crore in 2023. Despite these declines, LIC maintained its lead as the largest insurer, with total new business premiums of Rs 13,523 crore in December, representing 44 percent of the industry’s total premiums.

The overall life insurance industry saw a 21 percent decline in premiums for December 2024 compared to the same month last year. LIC’s market share for the April-December period stood at 57.4 percent, slightly down from 58.8 percent in 2023.