Morgan Stanley said the non-life insurance industry reported modest growth in August, with premiums rising 2 percent year-on-year compared to 3 percent in July and 6 percent year-to-date. The brokerage noted that private multi-line players were flat in August, following a 2 percent year-to-date growth and a 3 percent decline in June.
It explained that the lower growth trend seen since October 2024 partly reflects a change in accounting treatment of long-term policies in some segments, which has made year-on-year comparisons difficult.
Among individual players, ICICI Lombard posted a 2 percent growth in August, recovering from a 10 percent decline in July and a 2 percent contraction year-to-date. Go Digit reported a strong 14 percent year-on-year growth, though slower than its 27 percent growth in July, but still above its 12 percent YTD performance.
Standalone health insurers (SAHI) reported 4 percent growth in August, compared with 10 percent in July and 9 percent YTD. Niva Bupa posted a 3 percent rise in gross direct premium income, lower than the 10 percent growth it reported in July and the 9 percent growth recorded year-to-date.
Morgan Stanley said the overall non-life sector remains stable but highlighted that growth rates have softened in recent months, with accounting changes and base effects playing a role in the moderation.
Disclaimer: The views and investment recommendations expressed above are those of Morgan Stanley. They do not represent the views of this publication. This article is for informational purposes only and is not investment advice.
