LIC's new premium business jumps 25.2% in FY20, records best sales in past six years; market share up 1.2%

Mumbai: Despite losing the most productive fortnight of the year to COVID-induced lockdowns, the national insurer LIC achieved a healthy 25.2 percent growth in the first-year new business premium in 2019-20, while private players collectively recorded just 11.64 percent. This has the Corporation increasing its market share as well. The Corporation’s composite market share in terms of a number of policies and the first-year premium stood at 75.90 percent and 68.74 percent respectively, recording a respective increase of 1.19 percent and 2.50 percent, LIC said. In terms of new policies, LIC has recorded the best sales in the past six years, selling 2.19 crore new policies in FY2020 while its first-year premium income rose to Rs 51,227 crore.  In FY2020, LIC has achieved its highest number of policies for the last six years. Individual new business performance has shown impressive figures of 2.19 crores in a number of policies and the first year premium income rose to Rs 51,227 crore, the Corporation said. LIC said this was achieved in spite of the truncation of the most productive fortnight of the year. The Corporation has collected single-premium of Rs 21,967 crore and non-single premium of Rs 29,260 crore in the tear, with their respective ratio being 42.88 for single premium and 57.12 for non-single premium. Pension and group schemes vertical created a new record by clocking over Rs 1 lakh crore in premium income in FY20. The Corporation has collected Rs 1,26,749 crore in group schemes new business premium income as against Rs 91,179 crores in FY2019, recording a growth of 39.01 percent and a market share of 80.54 percent, up from 77.94 percent in FY19. “Overall, we have achieved an impressive growth rate of 25.17 percent in the first year new business premium compared to private players who have collectively achieved a premium growth rate of 11.64 percent,” LIC said. On the claims front also, in spite of the severe constraints of lockdown LIC settled 2.03 crore maturity and money-back claims and annuities in the year, while death claims settled stood at 7.50 lakhs. Annuity payments due in March 2020 and April 2020 have also been settled on due dates.