13% YoY Growth for Private Life Insurance Firms in July: Report

Private life insurance companies delivered 13% year-on- year growth in individual annual premium equivalent (APE) during July 2016, lower than 24-27% over the previous two months, according to a report. Life insurance companies in the private sector delivered 13% growth in individual APE during last month, leading to 18% growth year to date (YTD) over the past four months, a report by Kotak Institutional Equities said here today.

According to the report, Bajaj Life Insurance, ICICI Prudential Life and SBI Life have delivered more than 10% growth among large players while HDFC Life, Reliance Life and Met Life reported a decline. Bajaj Allianz Life delivered 44% growth in individual APE as compared to 72% in June 2016. During June quarter of this fiscal, share of individual unit linked (UL) policies increased to 58% from 40% year-on- year.

Birla SL, on a low base, reported 10% APE growth as compared to 7% in June 2016. This was largely led by increase in ticket size, the report said, adding that HDFC Life reported 17% decline in individual APE. ICICI Prudential Life reported 15% individual APE growth whereas ticket size in individual non-single business was flat year-on- year, up 7% on quarterly basis, it said, adding that SBI Life remains strong at 50% individual APE growth.

LIC reported 16% growth in individual APE on the back of 40% growth in individual non-single ticket size, likely due to its focus on ULIPs.The report goes on that LIC continues to have high share of single premium at 82%. Private players have generally been selective in this segment.