Page 14 - Insurance Times April 2022

Private Life Insurance

News

SBI Life logs 56% growth in 12,255 crore, led by traction in impressive growth in new business
renewal premium and new business premium (NBP) in February, driven
net profit premium. On an annualised premium mainly by initial public offering-bound
SBI Life Insurance reported a 56 % rise equivalent basis, premiums increased Life Insurance Corporation (LIC) of
in net profit at Rs 364 crore for the by 20.4 % YoY to Rs 2576 crore. India's sharp jump in NBP in the same
third quarter ended December. period, fuelled by 40 % growth in group
A number of life insurance companies
The private sector insurer's profit recently increased their premiums on the single premiums.
stood at Rs 233 crore in the same prodding of their reinsurance partner, NBP of life insurers rose 22.47 % year-
quarter of the previous fiscal, Munich Re. HDFC Life has increased its on-year (YoY) to Rs 27,464.76 crore in
according to a regulatory filing. term plan prices by 15-25 % and ICICI February, with LIC's NBP recording a
However, total income declined to Rs Prudential has increased it by 10 %. jump of 35.36 % to Rs 17,849.34 crore,
20,458.31 crore in the quarter under "We should continue to expect pricing and private insurers reporting a
review from Rs 26,551.90 crore in and underwriting norms to evolve over marginal 5 percent growth in the same
October-December 2020 period. time in line with expanding geographic period to Rs. 9,975.42 crore, showed
The company's solvency ratio stood 209 and demographic coverage. The the data released by the Life Insurance
Council - an industry body for life
% as on December 31, 2021 as against recent increase in protection plan insurance companies.
the regulatory requirement of 150 %. prices is a result of the above-
mentioned factors and can be
The asset under management rose to expected to be business as usual Term insurance ownership
Rs 2,56,900 crore at the end of events from time to time to reflect the
December 2021 compared to Rs widening market," said Vibha Padalkar, up in 2 years: Survey
2,09,500 crore in the year-ago period. Indians are buying more term plans
managing director and chief executive
"In view of seasonality of the industry, of HDFC Life. now as term insurance ownership has
the financial results for the quarter Traditionally, term plan premiums in India gone up to 43 % from 39 % last year,
and nine months ended December 31, were among the lowest in the world for revealed the India Protection Quotient
2021 are not indicative of the results a long period of time. But, since the (IPQ) survey 4.
that may be expected of any other pandemic started, term plan rates have This is despite life insurance ownership
interim period or full year," it said. remaining unchanged at 78, signifying
gone up between 25 - 30 % and if the the fact that consumers are now
HDFC Life net up 3.3% current increase by insurers is factored in, diversifying their insurance holdings
the increase in term plan rates will be
HDFC Life reported a 3.3 % year-on-year anywhere between 50 - 60 %. and building a holistic portfolio.
(YoY) rise in net profit to Rs 273.7 crore The term insurance ownership has
for the quarter ended December due to gone up from 36 % to 43 % in two
a decline in income from investment. Life insurers new biz years' time. The increase in term
Its gross premium income remained premium rises 22% insurance ownership is despite life
healthy with a 27 % increase to Rs Life insurance companies reported insurers having increased term

14 The Insurance Times, April 2022