Life Insurance Industry Records Strongest Q1 in Years, New Business Premium Hits ₹1.09 Lakh Crore

India's life insurance industry collected ₹1.09 lakh crore in new business premiums during the April to June quarter, a 16.6% jump from the same period a year ago, with private sector insurers growing at nearly three times the pace of state-run Life Insurance Corporation of India (LIC).

Private life insurers reported a 27.5% surge in new business premium to ₹43,522 crore from ₹34,134 crore, while LIC posted a more measured 10.3% rise to ₹65,548 crore from ₹59,410 crore, according to Life Insurance Council data.

How The Industry Split

LIC continues to dominate in absolute terms, accounting for nearly 60% of total industry new business premium. Its retail business showed steady momentum, regular premium collections rose nearly 20% year-on-year and individual single premium business grew 9.3%, supported by consistent demand across both retail and institutional segments.

Private insurers, however, are closing the gap. Growth was driven by expansion in group single premium business alongside healthy demand for individual protection and regular premium products.

Listed Insurer Performance

Details of key listed insurance companies growth in new business premium:

• SBI Life Insurance: ₹8,905 crore, up 22.6% year-on-year (YoY), fastest growth among listed peers

• ICICI Prudential Life Insurance: ₹4,866 crore, up 21.3% YoY

• HDFC Life Insurance: ₹8,432 crore, up 12.6% YoY

• Axis Max Life Insurance: ₹2,964 crore, up 17.5% YoY

What Is Driving The Numbers

Demand for protection, annuity and savings products has improved through the quarter. Insurers are also actively building their books ahead of regulatory changes expected over the next two years, including transitions to new accounting and capital frameworks that will reshape how products are priced and reported.

Private insurers are using group insurance as a volume driver while maintaining steady traction in individual business. LIC's scale and distribution network continue to give it an unmatched position in absolute premium collection even as its growth rate trails the private sector.

Also Read- Centre Extends Customs Duty Relief On Electronics Manufacturing Imports Till 2029