Mumbai: The life insurance industry recorded an 8.43% year-on-year rise in new business premiums (NBP) in April 2025 to ₹21,965 crore, up from ₹20,258 crore a year earlier, according to data released by the Life Insurance Council.
The growth was primarily driven by the state-run Life Insurance Corporation (LIC), which posted a 9.9% increase in NBP to ₹13,610 crore from ₹12,383 crore.
Private sector insurers reported growth of 6% with premiums to ₹8,355 crore, up from ₹7,875 crore. Among listed private players, HDFC Life led the pack with a sharp 23.37% jump in premiums. Axis Max Life followed with 17% growth, and ICICI Prudential reported 10% rise. SBI Life posted a marginal 0.3% rise, while Tata AIA and Bajaj Allianz saw gains of 2.2% and 4.4%.
While HDFC Life saw good total premium growth, its annualised premium equivalent (APE) rose 10% year-on-year, while retail APE grew 3%. For ICICI Prudential, APE increased by 5%, but retail APE declined 16% despite overall premium growth. SBI Life reported stable numbers, with APE and retail APE rising 8% and 2%, respectively. Axis Max Life saw robust growth across segments, with APE up 23% and retail APE jumping 24% on year. Industry experts believe a softening interest rate cycle and volatile equity markets may support demand for traditional savings products.
However, in the previous quarter, life insurers have seen growth coming from sale of unit-linked products. For instance, during January-March 2025, HDFC Life's individual APE mix comprised 39% ULIPs, 32% non-par savings, 19% participating products, and 5% each from term and annuity products. Despite equity market volatility, ULIP demand remained firm, and the company saw strong traction in participating products.
HDFC Life CEO Vibha Padalkar had said she in her investor call recently that she expects traditional insurance products to gain further momentum in FY26, supported by macroeconomic tailwinds and investor caution amid market fluctuations.
The growth was primarily driven by the state-run Life Insurance Corporation (LIC), which posted a 9.9% increase in NBP to ₹13,610 crore from ₹12,383 crore.
Private sector insurers reported growth of 6% with premiums to ₹8,355 crore, up from ₹7,875 crore. Among listed private players, HDFC Life led the pack with a sharp 23.37% jump in premiums. Axis Max Life followed with 17% growth, and ICICI Prudential reported 10% rise. SBI Life posted a marginal 0.3% rise, while Tata AIA and Bajaj Allianz saw gains of 2.2% and 4.4%.
While HDFC Life saw good total premium growth, its annualised premium equivalent (APE) rose 10% year-on-year, while retail APE grew 3%. For ICICI Prudential, APE increased by 5%, but retail APE declined 16% despite overall premium growth. SBI Life reported stable numbers, with APE and retail APE rising 8% and 2%, respectively. Axis Max Life saw robust growth across segments, with APE up 23% and retail APE jumping 24% on year. Industry experts believe a softening interest rate cycle and volatile equity markets may support demand for traditional savings products.
However, in the previous quarter, life insurers have seen growth coming from sale of unit-linked products. For instance, during January-March 2025, HDFC Life's individual APE mix comprised 39% ULIPs, 32% non-par savings, 19% participating products, and 5% each from term and annuity products. Despite equity market volatility, ULIP demand remained firm, and the company saw strong traction in participating products.
HDFC Life CEO Vibha Padalkar had said she in her investor call recently that she expects traditional insurance products to gain further momentum in FY26, supported by macroeconomic tailwinds and investor caution amid market fluctuations.
