The insurance sector witnessed robust growth in individual Annualized Premium Equivalent (APE) in January 2025, with private insurers reporting a 20% year-on-year (YoY) increase, according to CLSA. The total APE growth for private insurers stood at 19% YoY, reflecting a strong recovery in the sector.
However, while individual New Business Premium (NOP) sold grew only 6% YoY, they have recorded a 9% growth over the first ten months of FY25 (10MFY25), indicating a steady upward trajectory.
Among private insurers, HDFC Life delivered the highest individual APE growth of 27% on a low 10% base, signaling strong momentum. ICICI Prudential Life (IPRU Life) reported an 18% total APE growth, while Max Life saw a 12% increase despite a very high 53% base last year. SBI Life’s individual APE growth was relatively lower at 3%, as it was measured against a high 35% base, reflecting a more normalized growth pattern.
HSBC also highlighted that the insurance sector rebounded in January 2025, following a slower Q3FY25 performance. The brokerage noted that ICICI Prudential Life and HDFC Life have relatively low residual growth expectations for FY25, suggesting less pressure to meet aggressive targets compared to peers. Additionally, SBI Life’s individual APE growth is recovering steadily, maintaining a healthy trajectory.
Overall, the insurance sector’s APE growth recovery in January indicates a positive outlook for private insurers, with leading players like HDFC Life, ICICI Prudential, and Max Life maintaining strong momentum, while SBI Life continues to stabilize after high base effects.
(Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Investors are advised to conduct their own due diligence before making any investment decisions.)
