Private life insurance companies’ grew 36% on year due to low base, and tracking month-on-month numbers, Kotak Institutional Equities said in a report.
The annual premium equivalent for private players rose 39% on year in August, 31% on year in July, and 16% on year in June. A year ago, the APE fell 6% in August and 7% each in July and June.
Revival in ULIPs, due to firm capital markets, and strong momentum in the non-par savings and annuity segment are key drivers of growth for private players, the brokerage said.
However, as base effect recedes, the on-year growth is likely to taper down a bit, the brokerage said. But strong demand for ULIPs and non-par savings will continue to support growth, Kotak Equities said.
Among key players, SBI Life and ICICI Prudential Life reported 67% and 34% on year growth, respectively, and HDFC retained 27% on year, despite a higher base compared with peers.
Max Life slowed down a bit, up only 9% on year, while Bajaj Allianz Life and Tata AIA Life reported a growth of 53% and 37% on year.
Meanwhile, LIC’s performance remained weak, with its APE growth falling 5% on year in August on a higher base than private players.
Source: Economic Times