Non Life Insurance
PSUs drag August premium growth of non-life insurers
The gross direct premium underwritten (GDPW) for the industry increased by a paltry 4.22% year-on-year (YoY) to Rs 24,554 crore.
According to General Insurance Council data, the gross direct premium of public sector general insurers fell 5% year-on-year to Rs 5,649.43 crore in August.
The non-life insurance industry recorded its slowest growth of the current fiscal in August, dragged down by a decline in premiums at large state-run general insurers. The gross direct premium underwritten (GDPW) for the industry increased by a paltry 4.22% year-on-year (YoY) to Rs 24,554 crore. Non-life insurers comprise public and private general insurance companies, standalone health insurers, and specialised public sector insurers.
According to General Insurance Council data, the gross direct premium of public sector general insurers fell 5% year-on-year to Rs 5,649.43 crore in August. The country’s largest PSU general insurer, New India Assurance, posted a 13% decline in GDPW to Rs 2,021.6 crore, while National Insurance Company saw a 14% drop in premium to Rs 1,151.4 crore.
Total premiums of private sector general insurers grew by 7% year-on-year to Rs 18,905 crore in August. Among them, HDFC Ergo was the only one to record a negative growth, with a 23% Y-o-Y decline to Rs 1,745 crore. In contrast, ICICI Lombard’s GDPW increased by 10% to Rs 2,137.32 crore while Bajaj Allianz General Insurance saw a 4% rise to Rs 1,736.23 crore.
An MD & CEO of a private general insurance company said monthly figures tend to fluctuate, noting that Q2 and Q3 are seasonally-quiet quarters for general insurers since most corporate renewals, particularly in health and liability insurance, occur in first and fourth quarters. The general insurance industry has grown by 11% YoY to Rs 1.14 lakh crore between April-August, he added.
The standalone health insurance segment stood out, achieving a 24.54% Y-o-Y increase in GDPW to Rs 3,229.12 crore. Within this segment, Aditya Birla Health Insurance with a 42% growth to Rs 304.45 crore, followed by IPO-bound Niva Bupa, which saw a 39% rise in premiums to Rs 596.98 crore. Star Health & Allied Insurance, the largest standalone health insurer, posted a 15% growth, reaching Rs 1,400.29 crore.
Source : Financial Express
