InvestorQ : Is it true that LIC has outperformed other private life insurers in terms of business growth in the month of July 2022?
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Is it true that LIC has outperformed other private life insurers in terms of business growth in the month of July 2022?

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Rashi Mehra answered.
2 months ago
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You are absolutely right. For the month of July 2022 (as per the latest data put out by IRDAI), there has been perceptible improvement in the performance of LIC. This is in terms of the premium earned as well as in terms of yoy growth and the sum assured. For instance, in July 2022, the market share of LIC in total premium income improved by a full 250 bps to 68.57% as compared to its premium market share in June. Out of the total premium income pool of Rs39,079 crore in July 2022, LIC earned Rs29,117 crore, which is 68.57%.

However, the dominance of LIC continued in the group policies and did not improve much in the individual policies, where private insurers did much better. LIC had a market share of 82.7% in group single premium and 96.59% in group non-single premium for the month of July 2022. In the case of individual non-single premiums, private insurers had a market share of 62.69% and in individual single premium, their market share was 43.98%. Clearly, it is group that LIC has dominated and built its market share on.

How does it look on the sum assured side? Historically, private insurers have dominated the share of sum assured. There is a reason for the same. Private insurers have traditionally focussed more on the term products where the ratio of sum assured to insurance premium is very high, giving them a much bigger share of sum assured. On the other hand, LIC has definitely seen its share of sum assured improve to 18.14% in the month of July 2022.

LIC did score some big brownie points on the premium growth in July 2022. The overall industry growth in premiums for the month of July 2022 over July 2021 was a robust 91.24%. However, if you break up the growth, the private life insurers saw premium growth of just 18.54% while LIC saw premium growth of a hefty 142.02%. This news is yet to act on the stock price, which is still stuck at Rs682/share. But, that is a different debate altogether for a different forum.

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