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Continued healthy momentum seen in life insurance business

ICICIdirect Research 13 Sep 2024 DISCLAIMER

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.

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