Non-life insurers report 13.7% growth in premiums in Q1FY25

Non-life insurers in India have reported a strong growth in gross direct premium underwritten in the April-June quarter of FY25 (Q1FY25). According to data released by the General Insurance Council, non-life insurers, which include general insurance companies, standalone health insurance companies, and specialised PSU insurers, recorded a 13.7 per cent year-on-year (Y-o-Y) increase in premiums.

The total premiums earned by non-life insurers in Q1 reached Rs 72,267.41 crore, up from Rs 63,540.55 crore in the same period last year. This growth was primarily driven by the strong performance in the health and motor insurance segments.

General insurers, who operate in multiple business segments such as motor, health, and marine, reported a 12.42 per cent Y-o-Y growth in premiums to Rs 63,948.72 crore in Q1. Public sector general insurers saw a 6.45 per cent increase in premiums, while private sector insurers reported a 16.37 per cent rise.

However, the data also revealed that public sector general insurers continued to lose market share in Q1, with their market share dropping to 33.39 per cent from 35.7 per cent in Q1 of FY24. On the other hand, the private sector’s market share rose to nearly 55 per cent.

Among the major non-Life insurance companies, New India Assurance Company reported a 2.82 per cent growth in premiums to Rs 10,670.47 crore, ICICI Lombard General Insurance saw a 20.37 per cent increase to Rs 7,687.63 crore, and Bajaj Allianz General Insurance recorded a 24.46 per cent growth to Rs 4,716.22 crore. HDFC Ergo General Insurance reported a 9.63 per cent growth, United India Insurance Company’s premium rose by 15.11 per cent, and Oriental Insurance’s premium increased by 13.32 per cent.

In the standalone health insurance segment, gross underwritten premiums by the five insurers increased by 24.85 per cent Y-o-Y to Rs 8,318.69 crore. Star Health & Allied Insurance Company, the segment leader, posted a 17.83 per cent growth in premiums to Rs 3,474.31 crore.

Specialised insurers like Agriculture Insurance Company of India saw a 54.38 per cent decline in premiums, while ECGC posted a 19.05 per cent growth during the same period.

Insurance sector analysts believe that the robust growth in the health segment post-Covid and the revival in motor sales will continue to drive industry growth in the coming quarters.

Overall, the non-Life insurance sector in India is showing resilience and growth potential, with both public and private insurers contributing to the positive momentum. As the economy recovers and demand for insurance products increases, the sector is expected to witness further expansion and development.