Life has no fun on high base as ULIP sales slow down

MUMBAI: Life insurance coverage corporations posted a 4.25% year-on-year improve in new enterprise premiums for the April-June quarter, pushed largely by non-public sector gamers, knowledge from the Life Insurance coverage Council exhibits.

The muted growth-compared to 22% progress within the April-June 2024 quarter-is resulting from a excessive base in the identical interval final yr, regulatory influence from new give up norms, and a softer push for high-ticket Ulip (unit-linked insurance coverage plan) gross sales amid ongoing international fairness market volatility, insurance coverage specialists stated.

Non-public life insurers recorded a 5.32% improve in new premiums, outpacing the three.43% progress reported by the state-run Life Insurance coverage Company of India (LIC). The whole premium of the trade grew to ?93,544 crore in April-June 2025 as towards ?89,726 crore in April-June 2024.

LIC’s progress is affected as a result of adjustments within the minimal ticket measurement. Among the many listed non-public sector corporations, Axis Max Life topped the charts by way of APE (annual premium equal)-annualised worth of premium collected from new insurance policies throughout the quarter-growth, adopted by HDFC Life.

Axis Max Life reported 21.66% improve in new enterprise and 23.37% uptick in common enterprise. HDFC Life reported 14.51% improve in complete premium whereas the common premium grew 10.81%. ICICI Prudential’s complete premium grew simply 6.47% whereas its common premium collections dipped 14% throughout the quarter, largely resulting from a slowdown in Ulip gross sales. SBI Life noticed 3.3% improve in premium whereas common premium was up 8.22%.

“Owing to a excessive base influence of Q1FY25, the spill-over impact of the brand new give up rules and a relative slowdown in gross sales of ULIPs given the volatility in fairness markets is more likely to drive moderated APE progress for the Life Insurers throughout Q1FY26,” Emkay stated in a report.Whereas insurers have seen moderation in premium progress, margins are anticipated to enhance resulting from excessive sale of non-participating merchandise.