After witnessing de-growth since 2010, the life insurance industry rebounded in the first quarter of the fiscal recording a robust 20 per cent growth in new premium income, reported PTI.
The industry as a whole sold 60 per cent 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.
Group single premium income contributed a whopping 54.6 per cent 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 per cent 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 per cent 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 per cent and 71 per cent, 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 per cent 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.