LIC, HDFC Life, other stocks rise up to 3% as Aug new business premium jumps 33% YoY. What Nuvama, others are saying
Life insurers reported a 33% YoY increase in total new business premium to Rs 41,198 crore in August, led by a sharp rise in group single-premium business. LIC posted more than 45% growth, while SBI Life and HDFC Life saw stronger retail-weighted premium growth.
Life insurers HDFC Life and LIC experienced significant gains in their stock prices following a notable increase in total new business premium by 33% year-on-year (YoY) in August. Despite market weakness, both companies saw their shares rise up to 3%. HDFC Life Insurance Company's shares jumped nearly 3%, trading at Rs 547.80 apiece, while LIC's shares rose nearly 1%.
ICICI Prudential Life Insurance Company shares also climbed by nearly 2%, while SBI Life shares declined. The growth in new business premium was largely driven by an impressive 56% YoY increase in group single-premium business, along with a 13% YoY rise in individual non-single premium. This surge was primarily fueled by the growth in group single-premium and single-premium business.
The Life Insurance Council's data indicated that the retail-weighted premium, which accounts for 14% of the total income, grew at a slower pace, with retail-weighted premium expanding by around 14% last month.
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