Life Insurance Companies Face Decline in New Business Premium
Mumbai, March 12, 2025 – Life insurance companies in total experienced an 11.6% year-over-year (YoY) decline in new business premium (NBP) during February, according to newly released data.
The Life Insurance Council’s findings show that the total NBP for the industry reached ₹29,985.5 crore, a considerable decrease from the ₹33,913.2 crore recorded in the corresponding period last year. The primary cause of this downturn was a weak performance from the Life Insurance Corporation (LIC) of India, which saw a significant drop in its premium.
LIC’s NBP for February fell substantially, totaling ₹15,514 crore. In contrast, private insurers demonstrated a modest but positive growth rate, with a collective increase of 3.2%, reaching ₹14,471.6 crore.
Within the private sector, the performance was mixed. SBI Life experienced an 18% YoY decrease in NBP. However, other major private insurers reported growth, with HDFC Life’s premium up 23.5%, ICICI Prudential Life at 5.3%, and Bajaj Allianz Life at 2.9%.
Market Analysis:
The decline in LIC’s premium heavily influenced the overall industry performance. However, the growth of private life insurance providers was rather muted. This, coupled with the absence of any immediate positive market triggers, suggests that current valuation levels might remain within a broad range.
This report suggests a neutral impact on market sentiment.
