Life insurance firms’ new business rose 21% in Feb.
LIC led the pack with 24% increase
Life insurers have reported a 21% rise in new business, or the first-year premium, for February, bolstered by market leader LIC’s good show as it returned to the positive zone since November.
The first year premium of the 24 insurers stood at ₹22,425.21 crore.
LIC saw a 24.18% rise in the first year premium to ₹12,920.57 crore. However, for the 11 months of FY21, ended February, the first year premium was 3% lower at ₹1,56,068.64 crore.
Private insurers posted a 16.93% increase in new business to ₹9,504.64 crore, while for the period till February this fiscal, they registered an 8.56% increase to ₹78,792.66 crore, according to figures released by insurance regulator IRDAI.
The life insurance sector usually tends to see an accelerated demand during February and especially March as customers rush to purchase new policies for tax breaks. The performance comes in the backdrop of India witnessing a pick up in economy despite rising fuel prices.
Non-life insurers, comprising general, standalone health and two specialised PSU insurers, who have been performing better on the back of the economic revival as well as growing demand for health policies, posted a 14.2% increase in the gross direct premium underwritten during February to ₹15,767.09 crore.
For the 11 months up to February, the increase was 3.67% to ₹1,79,435.73 crore.
Standalone private health insurers registered gross direct premium underwritten of ₹1,426.26 crore (₹1,395.60 crore) during February and a 7.4% increase up to February to ₹13,534.99 crore.
General insurers reported ₹13,159 crore in gross direct premium underwritten, or an increase of almost 9%. For the 11 months of this fiscal, they posted a rise of 2.47% to ₹1,54,156.55 crore.
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