Winning Bizness Desk
Mumbai. Just before the IPO, the growth of the country's largest government insurance company LIC has slowed down, while its private competitors have got an edge and are trying to suppercede it. This information received from the data of the insurance sector regulator IRDAI suggest so. However, if only the numbers are considered, then there is a huge difference between LIC and private companies.
New business premium slowed down
According to the data, in the first 11 months of the financial year 2021-22, the growth of new business premium of LIC was 0.24 percent. During this, the company achieved a new business premium of Rs 1.56 lakh crore. In comparison, the growth of new business premiums for private insurance was 24.7%. It's total new business premium during this period stood at Rs 98,213 crore. It is worth noting that LIC has made a plan to raise 60-80 thousand crore rupees from the LIC IPO in the coming month. After the IPO, it will come in the list of the largest companies of the country. The government is going to sell its 5 percent stake in LIC.
Which companies are ahead in terms of growth?
In this financial year so far, the new business premium growth of the largest 5 private life insurance companies has been recorded more than that of LIC. These 5 private life insurance companies include SBI Life, ICICI Prudential Life, Max Life Insurance and HDFC Life Insurance. SBI Life achieved a new business premium of Rs 22,613 crore with 25% growth.
ICICI Pru Life posted 18% growth
ICICI Pru Life posted a new business premium of Rs 12,844 crore with 18% growth. Max Life Insurance achieved a new business premium of Rs 6,510 crore with a growth of 16 per cent. HDFC Life's new business premium stood at Rs 21,136 crore with a growth of 22.52 per cent. In the March quarter of this financial year, LIC lagged far behind in terms of business growth. The company's new business premium stood at Rs 30,425 crore during January-February. The new business premium in the December quarter was Rs 40,902 crore. The new business premium for the September quarter was Rs 49,512 crore. In the June quarter, this figure was Rs 35,601 crore.
