Life insurance companies’ new business premium growth picked up sharply in November 2021. Among private insurers, SBI Life Insurance’s new business premium rose 130% month-on-month (MoM) in November. This was largely aided by growth in the group single premium category. It had the highest market share of 8.77% in November 2021, gaining ground from HDFC Life which had led new business premiums in May.

ICRA expects new business premium growth to pick up in H2FY22. However, a possibility of a third pandemic wave may impact the profitability of life insurers as most companies are building reserves for future Covid-19 related death claims.

HDFC Life Insurance’s new business premium grew 4% MoM in December to Rs 1,928.6 crore while ICICI Prudential Life Insurance’s grew at 11%, and Max Financial Services’ arm Max Life Insurance grew at 15%.