Page 15 - Insurance Times March 2022

Private Life Insurance

News

New biz premium of life rate of close to 20 per cent in terms of While in the October-December quarter,
individual new business (regular) NBP of life insurers jumped 10.45 per
firms sees tepid growth premium. This has been triggered by cent to Rs 73,249.97 crore over the same
Life insurers reported muted growth in the Covid 3rd wave, which impacted a period last year, mainly backed by robust
new business premiums (NBP) in large population in January. We also growth of private insurers' NBP, in the
January after a tepid showing in observed a high recovery rate amongst second quarter, they netted NBP of Rs
December, owing to single-digit those infected. Thus, we expect the 75,392 crore, up 16 per cent from the
growth in private insurers' NBP and industry to bounce back in the months same period last year.
degr-owth in initial public offering- of February and March", said Rushabh
bound Life Insurance Corpor-ation (LIC) Gandhi, Deputy CEO, IndiaFirst Life
of India's NBP. Insurance. Insurance stocks continue

The third wave of the pandemic, Among listed private players, SBI Life's to underperform
attributed to the Omicron variant, was NBP was up 4 per cent, HDFC Life saw As the government and bankers gear
at its peak in January and could have 9 per cent growth, and ICICI Prudential up for the mega initial public offering
impacted life insurers' performance. Life's NBP grew 1.4 per cent. Max Life, of LIC, a niggling worry for them could
Also, many insurers, particularly in the be the lower appetite for insurance
on the other hand, saw its NBP contract
private space, increased their term plan companies among investors of late.
17 per cent in the same period.
premiums during this period, which However, Bajaj Allianz Life's NBP was up Shares of the seven listed insurance
could have had an impact on business. companies have underperformed the
34.53 per cent. Commenting on the
NBP is the premium acquired from business growth, Tarun Chugh, MD & market in the past three to six months
new policies for a particular year. CEO, Bajaj Allianz Life, said, "It's been due to expensive valuations and the

NBP of the overall industry in January our sustained att-empt to write multiple business challenges they faced
during the pandemic.
reported a marginal 2.65 per cent business responsibly i.e. sell the right
growth to Rs 21,957.04 crore over the kind of products to the right customer Shares of HDFC Life Insurance, the
same period a year ago. While private after analysing their needs. Towards largest insurance firm in terms of
insurers' NBP in January grew 9.4 per this we have invested across the board market capitalisation, have declined
cent to Rs 9,020 crore, state-owned from products to training to tools and 15% in three months and 10% over the
insurance behemoth LIC's NBP so on. This process also enabled us to past six months. SBI Life Insurance, the
contracted 1.57 per cent to Rs write quality business". second-biggest, fell 7% in three months
12,936.29 crore, revealed the data In December, private insu-rers' NBP and 1% in the previous six months.
released by the Life Insurance Council rose 30 per cent year-on-year (YoY) to The benchmark Nifty fell 3% in three
- an industry body for life insurers. Rs 13,032.33 crore, surpassing LIC's at months but gained 7.4% in six months.
"The January numbers were muted Rs 11,434.13 crore. LIC's NBP dipped "Insurance companies are facing
with the industry growth rate dipping 20 per cent, largely due to 35 per cent pressure on profitability due to high
to 7 per cent versus a yearly growth fall in group single premium. claim ratios both genuine as well as

The Insurance Times, March 2022 15