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Continued healthy momentum seen in life insurance business
Life insurance industry reported healthy growth in business momentum. Industry premium increased 22% YoY for the month of August 2024, while in April to August 2024, the growth was at 20.8% YoY. In terms of APE (Annualised Premium Equivalent), premium growth remains healthy at 10.5% YoY (YTD growth at 15.8%).
Among peers, private players delivered 9% YoY growth while LIC reported 13% YoY growth, led by single premium. Growth in group single business (YTD growth at 25.7%) and guarantee & unit linked products in individual segment aids premium accretion.
On APE basis, Max Life and IPru Life delivered healthy growth at ~16.6% and 20% (Aug’24), HDFC Life witnessed rise of 8% YoY, though SBI Life's APE declined by 2%.
Business momentum continued to remain robust which induces confidence. However, impact of new surrender guidelines (effective from October 2024) on business growth and margins remains watchful.
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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