The life insurance sector saw mixed results in February, with some insurers showing strong premium growth while others faced declines. Based on year-on-year (YoY) data, HDFC Life stood out with the highest premium growth, while LIC and SBI Life posted weaker numbers. Here's a breakdown of how the major life insurers performed across three key metrics: Premium Growth, Total Annualized Premium Equivalent (APE), and Retail APE.
HDFC Life: Strong Growth on a Strong Base
HDFC Life delivered an impressive 24% YoY growth in premium collections, maintaining its momentum despite a strong base from the previous year. However, its Total APE grew by just 4%, indicating that while overall premium collections rose, new business growth was relatively moderate. Retail APE saw a marginal 1% increase, suggesting that most of the growth came from non-retail segments.
Key Figures:
Premium Growth: ▲24%
Total APE: ▲4%
Retail APE: ▲1%
ICICI Prudential Life: Mixed Performance
ICICI Prudential Life (ICICI Pru) reported 5% YoY growth in premium collections, a relatively modest performance. However, its Total APE surged 13%, reflecting strong business activity. Despite this, the company witnessed a 13% decline in Retail APE, indicating that growth was primarily driven by institutional or corporate clients rather than individual policyholders.
Key Figures:
Premium Growth: ▲5%
Total APE: ▲13%
Retail APE: ▼13%
Axis Max Life: Mixed Performance
Axis Max Life saw 6% YoY growth in premium collections, which, although positive, was weaker compared to peers. The insurer’s Total APE grew by 8%, but its Retail APE declined by 10%, suggesting that individual customer demand was weaker.
Key Figures:
Premium Growth: ▼6%
Total APE: ▲8%
Retail APE: ▼10%
SBI Life: Weak Growth Over a Strong Base
SBI Life faced a challenging month with an 18% decline in premium collections YoY, indicating significant headwinds in policy sales. Its Total APE dropped 6%, reflecting a slowdown in overall new business activity. Retail APE also saw a 1% decline, indicating stagnation in the individual segment.
Key Figures:
Premium Growth: ▼18%
Total APE: ▼6%
Retail APE: ▼1%
LIC: Weak Performance Despite Market Dominance
LIC, India’s largest insurer, posted a 22% decline in premium collections YoY, signaling a significant drop in new policy sales. Despite this, Total APE grew by 23%, suggesting strong contributions from high-ticket policies. However, Retail APE plunged 17%, highlighting challenges in attracting individual buyers.
Key Figures:
Premium Growth: ▼22%
Total APE: ▲23%
Retail APE: ▼17
HDFC Life emerged as the strongest performer in February, with solid premium growth and stable retail demand. ICICI Pru and Axis Max Life showed mixed results, while SBI Life and LIC struggled with weak premium growth over their strong bases.
The overall data suggests that while some insurers are successfully navigating market challenges, others face slowing retail demand. Moving forward, life insurers will need to focus on boosting retail APE and premium growth to maintain long-term stability.
Disclaimer
The information provided in this article is for informational and educational purposes only. It is based on publicly available data and does not constitute financial, investment, or insurance advice. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment or insurance-related decisions. Sensexnifty.com and its authors are not responsible for any financial losses or decisions made based on this content.