LIC posts 25.17 per cent growth in first-year new business premium in FY20

State-owned Life Insurance Corporation of India said it has achieved highest number of policies for the last six years in 2019-20.

In a round-up of its performance for the last fiscal, LIC said it registered a growth of 25.17 per cent in first-year new business premium when compared to private players who collectively achieved a premium growth rate of 11.64 per cent.

“The industry’s positive growth in policies is also due to LIC’s superlative performance,” it said in a statement on Monday.

LIC’s composite market share in number of policies touched 75.9 per cent in 2019-20, registering a growth of 1.19 per cent. Similarly, its market share in first-year premium touched 68.74 per cent last fiscal with a growth of 2.5 per cent.

In terms of individual new business performance, LIC issued 2.19 crore policies as at March 2020 with ₹51,227 crore in first year premium income.

“While ensuring growth both in number and premium, in spite of the truncation of the most productive fortnight of the year, the Corporation has achieved a healthy business mix,” LIC said.

It collected single premium of ₹21,967 crore and non-single premium of ₹29,260 crore, the ratio being 42.88 for single premium and 57.12 for non-single premium.

By March 31, LIC settled 2.03 crore maturity and money back claims and annuities. It also settled 7.50 lakh of death claims. Annuity payments due in March and Aprilhave also been settled on due dates.