Life Insurance: LIC grows Slower Clip in the New Business Collection

LIC LogoState-owned Life Insurance Corporation (LIC) has grown at a slower clip in the new business collection (the annual premium equivalent or APE insurance language) in the period from April 2015 to February 2016, compared with private insurers.

While APE LIC recorded an increase of 5% over the 11-month period of last year (year on year), private insurance companies have seen an increase in APE of 13%, according to a note from the financial services research firm Prabhudas Lilladher (PL), published on Tuesday.

In February, LIC saw its activity in terms of APE increased by 31 percent per year, while the rest of the industry grew by 14%, resulting in an increase of 22 per cent to 24 Indian life insurance companies.
LIC is ahead of the other in February, the group insurance business.

“LIC reported 59% growth year on year in the group business, while private players reported 13% YoY decline, as they focus on the more profitable personal business,” said the note.

In the individual business segment, private players have managed to keep their market share from 52% in HDFC Life, Reliance Life, PNB Metlife, Kotak Life, Tata AIA and Max Life to increase market share. The share of LIC in the segment increased to 53.1% compared to 48.2% in January 2016.

Originally posted 2016-03-19 12:33:35.


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