 "Life insurance market clocks 20% growth in first quarter")
The sector mopped up Rs 23,570 crore during the April-June period riding on group single premium policies.
The industry as a whole sold 60% more group single premium policies, mopping up Rs 12,861 crore in the quarter as against Rs 8,016 crore in the same period last year.
Also Read
Group single premium income contributed a whopping 54.6% to the total new business for the industry.
The higher overall growth came despite the largest private sector player ICICI Prudential Life recording a negative growth.
Similarly, Reliance Life, Max Life and India First have also shown negative growth in the first year premia during the quarter.
The life insurance industry consisting of the market leader LIC and 23 private sector players mobilised Rs 23,570 crore in new premia, up 20% from Rs 19,702 crore in the year ago period, as per the Life Insurance Council data.
The June quarter is usually considered a lean period, while the March quarter, the best, as salaried class normally buy policies in the last quarter to save on tax.
The higher growth was led by LIC which clipped at over 31% in the quarter, mopping up over Rs 5,700 crore in new premium, while from the private sector side HDFC Life and Bajaj Allianz Life reported growth of 35% and 71%, respectively in new premium income.
Growth was also aided by a massive 60% surge in group single policies in new sales.
However, it has recorded a negative growth in other segments like individual single, individual non-single and group non-single.
In terms of sale of policies too, the industry sold 46,44,333 in the reporting period, up 22% as against 38,19,547 polices sold in the same period a year ago.
This is the first time in the past five years that the industry has reported growth in new premium business.