The life insurance industry, comprising 27 insurance companies including government-owned LIC, has recorded a new business premium of ₹35,020.28 crore in September, a year on year growth of 14 per cent from ₹30,716.29 crore in September 2023.

While LIC recorded a new business premium of ₹20,369.26 crore in September, a growth of 12.37 per cent, the private sector's new business premium during September was ₹14,651.02 crore, at a year on year growth of 16.37 per cent, according to data from the Life Insurance Council.

Among the private sector players, HDFC Life Insurance, ICICI Prudential Life Insurance, SBI Life Insurance grew 9.14 per cent, 20.62 per cent, and 4.59 per cent, respectively, in September.

Between April and September 2024, the new business premium for the industry was ₹1,89,214.04 crore, up 19.47 per cent from ₹1,58,376.81 crore in the corresponding period previous year.

As of the first six months of September 2024, LIC's market share in terms of new business premium was 61 per cent, an improvement from 58.5 per cent in the corresponding period previous year.

Analysts expect life insurance companies to maintain the growth momentum during the second quarter results even as margins could come under pressure due to higher share of low margin unit linked policies (Ulips) in the overall business mix.

"Life insurers are expected to deliver robust APE (annual premium equivalent) growth during H1FY25, continuing the strong growth momentum during Q1FY25. The robust APE growth is expected to be driven by an increase in the number of Ulips sold, aided by strong movement in the equity markets," said Emkay Research in a results preview report for the insurance industry.

"Increased proportion of Ulips in the product mix is expected to impact the VNB (value of new business) margins. Further, continued investments in the distribution channel are expected to weigh on the VNB margins of life insurers. Resultantly, we expect the life insurers to report softer VNB margins during H1FY25," said Emkay Research in its report.

The industry in India has been making significant strides by expanding access to insurance and making an effort to reach out to areas and segments of population that were previously underserved when it comes to their insurance needs, the council said.