India’s largest life insurer Life Insurance Corporation (LIC) announced a 13.46% increase in its first-year premium for the fiscal year 2018. Total collection of first-year premium stood at an all-time high of Rs.1.34 lakh crore compared to Rs.1.24 lakh crore in fiscal year 2017. The record growth in first-year premiums comes amidst a 10.99% growth in new business premium in the life insurance industry.
When it comes to market share, LIC continues to be the industry leader with 69.4% of first-year premiums. In terms of the number of policies sold, LIC holds 75.67% of the market share for fiscal year 2018. In fiscal year 2017, LIC’s market share for first-year premiums stood at 71.07%. Also, the company’s market share for the previous year in terms of the number of policies sold stood at 76.09%.
Despite the marginal decline in market shares, LIC was able to post record high first-year premium mainly because of the significant growth in the life insurance industry. According to the Life Insurance Council, new business premiums for the current fiscal year increased 10.99% to Rs.1.94 lakh crore compared to Rs.1.75 lakh crore in the previous year.
Group insurance business across the industry increased 4.97% to Rs.1.02 lakh crore as against Rs.96,939 crore in the previous fiscal year. LIC’s market share in group and pension scheme business stood at 81.38% with new business premium income to the tune of Rs.82,807 crore.
When it comes to private players in the market, HDFC Life occupied a distant second spot with a market share of 5.85% for new premium income. This was followed by SBI Life and ICICI Prudential with market shares 5.66% and 4.70% respectively. Among private insurers, SBI Life took the top spot for the number of policies sold with a market share 5.07%.