Non-life insurers post 13% rise in premium in Feb but with dip in revenue

Market share of private insurers increases to 53.79 per cent YoY

Non-life insurers posted a nearly 13 per cent year-on-year (YoY) growth in gross direct premium underwritten in February 2024. But there was a sequential dip in their revenue.

According to the monthly data released by the General Insurance Council (GIC), the gross direct premium underwritten (GDPW) of the non-life insurers in February was Rs 22,387.39 crore, up 12.6 per cent from Rs 19,873.62 crore in the year-ago month. But in January, it was over Rs 27,200 crore.

The premium of general insurers grew by 11.6 per cent YoY to Rs 18,284.16 crore in February this year.

The public sector general insurers clocked 10.3 per growth in premium to Rs 6,417.44 crore, whereas, the private sector counterparts witnessed 12.33 per cent increase to Rs 11,866.72 crore.

 

Among the companies, the industry leader, The New India Assurance Company saw just 4.3 per cent YoY growth in premium to Rs 2,417.33 crore. The premium of leading private sector players like ICICI Lombard General Insurance grew by 38.6 per cent YoY to Rs 1,854.19 crore while Bajaj Allianz General Insurance’s increased by 38.5 percent to Rs 1,294.8 crore in February.

Among other key insurers, HDFC Ergo General Insurance’s premium was up by just 4.7 per cent to Rs 1,546.3 crore, whereas United India Insurance Company’s premium surged 24.7 per cent to Rs 1,627.12 crore and Oriental Insurance’s premium rose 14.2 per cent YoY to Rs 1,443.2 crore, in February 2024.

In April-February period of FY24, the general insurance companies’ GDPW grew by 14.7 per cent YoY to Rs 2.24 trillion, where again, private players have posted faster growth than their public sector peers.

In terms of the market share, the public sector general insurers stood at 31.35 per cent of the overall insurance industry in February 2024 as against 32.55 per cent in February 2023.

The private insurers, on the other hand, witnessed an increase in market share to 53.79 per cent in the reported month as compared to 51.39 per cent in the year ago period. 

In a report, CareEdge Ratings noted that the Indian non-life insurance market will grow at a rate of nearly 13 per cent – 15 per cent in the medium term backed by healthy growth in the health and motor segments.

In February 2024, the GDPW of the five Standalone Health Insurers (SAHI) increased 29.3 per cent to Rs 3,000.17 crore from Rs 2,319.69 crore in the year-ago period.

Among the SAHIs, the segment leader, Star Health & Allied Insurance Company posted 19.3 per cent YoY growth in premium to Rs 1,413.8 crore in February 2024.

In April-February period of FY24, the SAHIs reported 26.2 per cent growth in premium to Rs 28,799.01 crore over the year ago period.

The GDPW of specialised insurer Agriculture Insurance Company of India was down 9.3 per cent YoY whereas ECGC posted 21.7 per cent YoY growth in premium during the time period.

CareEdge Ratings’ report added, “The non-life insurance industry could be influenced by the tensions around the Red Sea which may see impact on the marine segment. Despite this, the overall outlook for the non-life insurance sector remains stable in the medium term.”