The private players enjoyed growth at 15% y-o-y in their Annual Premium Equivalent (APE), whereas the LIC posted a slower APE growth of 7% y-o-y to Rs 2,786.1 crore in January,while the overall momentum seems to be slowly moderating, the weakness last month was driven by two large players, ICICI Life and SBI Life; private sector growth, excluding these two players, was 32% compared to 27-37% during the past six months in the individual APE,” said the Kotak Institutional Equities report.
According to data from the Life Insurance Council, new business premiums for the month of January for life insurance companies fell by about 3% to Rs. 12,715.93 crore against Rs 13,110.72 crore a year ago. According to the Kotak report, “Private sector players reported a 15% growth in overall APE in January, down from 21% in December 2017 and 23-74% in the preceding eight months. LIC’s growth rate moderated to 7% from 14% y-o-y in December. On a YTD basis, private sector is up 27% and LIC is up 16%.”
