Life insurers post nearly 40% growth in December premiums after GST relief

India’s life insurance industry reported its strongest monthly performance of the current financial year in December, recording nearly 40% year-on-year growth in new business premiums (NBP), supported by improved affordability following the rationalisation of goods and services tax (GST) on individual life insurance policies.

Data released by theLife Insurance Council

showed that total first-year premium income rose 39.5% year-on-year to ₹42,151 crore in December, compared with ₹30,219 crore in the corresponding month last year.

The December outturn followed a more than 20% annual growth reported in November.

State-owned Life Insurance Corporation of India (LIC) led the expansion, reporting a 57.45% year-on-year jump in new business premiums to ₹21,294 crore, up from ₹13,524 crore a year earlier. Private life insurers collectively posted a 25% increase in premiums to ₹20,857 crore during the month.

Within LIC’s portfolio, group single premium business—the corporation’s largest segment—rose sharply by 80% to ₹14,731 crore from ₹8,374 crore in December last year. Premiums from individual policies increased 27% to ₹6,563 crore. Among private insurers, individual business premiums grew 21% year-on-year to ₹14,387 crore, while group business rose 36% to ₹6,470 crore.

Among major private players, SBI Life Insurance, the largest private insurer by premium, reported a 19% year-on-year increase in December premiums to ₹6,336.96 crore. HDFC Life Insurance saw premiums rise 14.55% to ₹3,108 crore, while ICICI Prudential Life Insurance posted a 25% increase to ₹1,945 crore. Max Life Insurance reported a 24.97% growth, with premiums reaching ₹1,567.72 crore.

Policy issuance also remained strong during the month. Life insurers sold 28 lakh policies in December, marking a 35.44% year-on-year increase.

On a cumulative basis, life insurers recorded a 13% rise in new business premiums during the April–December period of the current financial year, with total premiums reaching ₹3.11 lakh crore. LIC reported a 12.34% increase in premiums to ₹1.77 lakh crore, while private insurers posted a 14% growth to ₹1.33 lakh crore.

The number of policies sold during the nine-month period edged up 1.71% year-on-year, reversing the contraction of 2.74% recorded in the corresponding period last year.