Latest data from the IRDAI showed that the NBP in November for life insurers came at Rs. 19,159 crore against Rs. 26,221 crore in the same period last year, recording a fall of 27%. The industry had recorded a 32% growth in NBP in the month of October.
The data showed that private life insurers reported a 5% decline in overall new business premium. HDFC Life, however, recorded a 10.7% fall in this category. Even so, the life insurer’s growth metrics in retail business has been stellar. Its retail business showed a year-on-year growth of 20% on annualised premium equivalent (APE) basis, according to Jefferies India Pvt Ltd. This compares with a 33% decline for the industry as a whole and a 54% decline for government-owned largest life insurer Life Insurance Corporation (LIC).
The largest private life insurer, SBI Life Insurance Company saw a decline of 6% in its retail APE, the brokerage added. “HDFC Life has likely maintained a strong focus on non- linked savings (both par and annuities), while growth in retail and credit-protect has also helped,” analysts at Jefferies wrote in a note.
Analysts expect growth numbers to improve in the fourth quarter of FY21 for the industry, again due to a base effect. Recall that in March, life insurers had reported a sharp contraction because of the lockdown in the last week of the month. HDFC Life is expected to shine among peers again.
