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Life insurance companies start Q4 with a bang

According to data from the Life Insurance Council, companies have posted a 35 percent growth in their first year premiums on a year-on-year basis.

Life insurance companies start Q4 with a bang

Life insurance companies have begun their most active business quarter with a bang. According to data from the Life Insurance Council, companies have posted a 35 percent growth in their first-year premiums on a year-on-year basis.The country’s largest insurer Life Insurance Corporation of India (LIC) beat industry, showing a growth of 39 percent by collecting new premiums of Rs 92,248.99 crore for April 2016 to January 2017 period. For the month of January itself, they posted Rs 8,724.59 crore of first-year premiums.

 March quarter accounts for about 60-65 percent of the business insurance companies get in a financial year. This is usually due to agents getting active to complete their annual targets and also because individuals buy products to meet their investment needs before filing taxes.

Private life insurers posted 26.3 percent growth for the April to January period of FY18 and collected Rs 37,306.10 crore during this period. In January, they collected Rs 4,413.50 crore as new premiums.

On one hand, while new premiums have been a reason to cheer, new policies stayed flat. The industry saw a 4 percent drop in the number of new policies, with LIC seeing a drop of 5.7 percent in new policy sales in April-January period on a year-on-year basis. Growth for private insurers was flat at 1.3 percent.

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