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FY25 new business premium grows 5%; falls short of ₹4 Trillion

24 Apr 2025 , 11:10 AM

MARCH 2025 – NBP GROWS, BUT STILL TOO TEPID

After 5 months of NBP contraction, LIC finally saw growth in new business premiums; albeit a marginal 1.7%. Overall, new business premium (NBP) expanded by 2.0% for FY25. For FY25, the NBP of private insurers grew at 2.6%, better than the 1.7% for LIC. What about number of policies sold? In March 2025 LIC reported contraction in policies sold at -23.4%, while for FY25, the contraction was less at -12.8%. Since October 2024, it is the private insurers that have dominated the NBP story and the number of policies sold.

FY25 NBP GROWS 5.1%, BUT FALLS SHORT OF ₹4 TRILLION

The table captures new business premium (NBP) growth of life insurers for March 2025 and the 12 months of FY25.

PARTICULARS	NBP (Mar-2025)	NBP (Mar-2024)	Growth YOY (%) Mar-25 / Mar-24	Growth YOY (%) FY25 / FY24
Individual Single Premium	7,420.35	6,664.39	11.34%	13.07%
Individual Non Single Premium	17,291.22	16,990.32	1.77%	10.35%
Group Single Premium	33,543.21	34,115.74	-1.68%	0.17%
Group Non Single Premium	555.69	590.47	-5.89%	-37.89%
Group Yearly Renewable Premium	2,628.64	1,852.70	41.88%	35.30%
Grand Total Premium Flows	61,439.11	60,213.62	2.04%	5.13%
PRIVATE INSURANCE COMPANIES
Individual Single Premium	2,332.06	2,676.34	-12.86%	4.26%
Individual Non Single Premium	12,357.51	11,929.50	3.59%	15.40%
Group Single Premium	7,288.66	7,865.60	-7.33%	-1.36%
Group Non Single Premium	122.99	41.39	197.15%	129.75%
Group Yearly Renewable Premium	2,430.57	1,400.17	73.59%	40.95%
Private Insurer Premium Flows	24,531.79	23,913.00	2.59%	9.80%
LIC OF INDIA
Individual Single Premium	5,088.29	3,988.06	27.59%	20.27%
Individual Non Single Premium	4,933.71	5,060.81	-2.51%	-0.79%
Group Single Premium	26,254.54	26,250.14	0.02%	0.69%
Group Non Single Premium	432.71	549.07	-21.19%	-44.50%
Group Yearly Renewable Premium	198.08	452.53	-56.23%	9.45%
LIC Premium Flows	36,907.33	36,300.62	1.67%	1.86%

Data Source: Life Insurance Council (New Business Premiums – NBP figures are ₹ in Crore)

There are 2 quick takeaways from the NBP data for March 2025 and FY25 till date.

Life insurance sector saw yoy growth in first year premiums of 2.0% in March 2025. Private insurers did better, growing at 2.6% in March 2025, while LIC trailed with NBP gaining just 1.7%. On a cumulative basis, LIC NBP growth at 1.9%, lagged the 9.8% growth shown by private insurers.
Overall premium collections for March 2025 was marginally higher YOY at ₹61,439 Crore. Here are the respective contributions. Private insurers saw their share of NBP falling to 39.9% in March 2025; compared to 48.3% in February, 47.1% in January, 55.5% in December, and 53.6% in November 2024. The share of LIC improved to 60.1% in March 2025; sharply higher than February and January 2025.

The March effect has given a boost to premium collections, which has surged compared to February. However, this may not be sustainable. While March has seen some recovery, the story of FY25 is about private insurers stealing a march over LIC.

LIC AGAIN SEES SHARP CONTRACTION IN POLICIES SOLD

The table captures number of policies sold by life insurers for March 2025 and the fiscal year FY25. Data is segregated for LIC and private insurers.

PARTICULARS	Policies (Mar-2025)	Policies (Mar-2024)	Growth YOY (%) Mar-25 / Mar-24	Growth YOY (%) FY25 / FY24
Individual Single Premium	1,90,593	2,23,424	-14.69%	6.43%
Individual Non Single Premium	41,98,795	51,88,541	-19.08%	-8.01%
Group Single Premium	373	455	-18.02%	24.11%
Group Non Single Premium	1,219	1,541	-20.90%	3.58%
Group Yearly Renewable Premium	3,238	4,478	-27.69%	-13.29%
Grand Total No. of Policies	43,94,218	54,18,439	-18.90%	-7.39%
PRIVATE INSURANCE COMPANIES
Individual Single Premium	34,150	66,047	-48.29%	-1.51%
Individual Non Single Premium	12,15,679	12,50,258	-2.77%	5.43%
Group Single Premium	321	371	-13.48%	25.53%
Group Non Single Premium	38	23	65.22%	100.00%
Group Yearly Renewable Premium	794	781	1.66%	4.47%
Private Insurer No. of Policies	12,50,982	13,17,480	-5.05%	5.19%
LIC OF INDIA
Individual Single Premium	1,56,443	1,57,377	-0.59%	9.05%
Individual Non Single Premium	29,83,116	39,38,283	-24.25%	-13.86%
Group Single Premium	52	84	-38.10%	19.85%
Group Non Single Premium	1,181	1,518	-22.20%	1.58%
Group Yearly Renewable Premium	2,444	3,697	-33.89%	-16.80%
LIC No. of Policies	31,43,236	41,00,959	-23.35%	-12.80%

Data Source: Life Insurance Council (Number of Policies are absolute figures)

Here are quick life insurance takeaways for March 2025 in terms of number of policies sold.

The overall insurance sector saw a fall in number of policies sold at -18.9% for March 2025. While the number of policies sold by LIC fell by -23.4%, the policy sales by the private players fell by -5.1%. Cumulative policies sold by LIC in FY25 contracted -12.8% in FY25, while private insurers showed positive growth of 5.2% in FY25.
Overall policies sold for March 2025 were sharply higher MOM at 43.94 Lakhs, but lower yoy. Private insurers saw their share of number of policies fall sharply to 28.5% from 38.2% last month. LIC saw its share for March 2025 increase to 71.5% compared to 61.8% last month.

Let us turn to how the NBP of 5 largest private life insurers grew in March 2025.

NBP TRENDS: TOP 5 PRIVATE INSURERS BY NBP IN MARCH 2025

In March 2025, 7 private insurers saw new business premium (NBP) of over ₹1,000 Crore, with overall growth at 2.6% yoy. The top 5 private insurers account for 67.0% of NBP.

HDFC LIFE INSURANCE COMPANY	Mar-25 NBP (₹ in Crore)	Mar-24 NBP (₹ in Crore)	YOY Growth (in %)
Individual Single Premium	610.07	535.21	13.99%
Individual Non Single Premium	1,908.31	1,808.25	5.53%
Group Single Premium	2,341.68	2,287.92	2.35%
Group Non Single Premium	0.00	0.00	N.A.
Group Yearly Renewable Premium	15.47	10.08	53.47%
Total	4,875.53	4,641.46	5.04%