Is India's life insurance industry achieving 10% retail APE growth in July?
Click to start listening
Synopsis
The life insurance industry in India has made significant strides, achieving a remarkable 10% retail APE growth this July. With private companies leading the way, this growth reflects resilience in a challenging market. Discover the dynamics behind these figures and what they mean for the future of insurance in India.
Key Takeaways
- 10% retail APE growth for the life insurance sector in July 2025.
- Private insurers grew by 14%, while LIC's growth was 0.4%.
- Retail APE increased by 6.4% this year.
- Group APE surged 31%, driven by private players.
- Industry growth forecasted at 11-12% for H2FY26.
New Delhi, Aug 11 (NationPress) The life insurance sector has shown a commendable business expansion with a 10% retail annual premium equivalent (APE) growth in July 2025, according to a report released on Monday.
The private life insurers experienced a 14% growth, while LIC's retail APE remained nearly unchanged at 0.4%, as reported by Emkay Global Financial Services Ltd.
The annual premium equivalent consists of the total value of regular or recurring premiums, along with 10% of new single premiums written during the period.
This year, retail APE increased by 6.4%, with private sector growth recorded at 10%. The life insurance industry saw a growth rate of 14% in July, based on a two-year compound annual growth rate (CAGR).
The report mentioned, "Considering the high base of H1FY25 and the effect of the new surrender regulations, the industry is likely to sustain its modest growth trajectory in H1FY26."
HDFC Life exceeded expectations with a 25% retail APE increase in July 2025. Conversely, Axis Max Life's growth decelerated to 14% after a period of strong performance. SBI Life recorded a 9% increase, while IPRU Life's retail APE decreased by 3% due to a significant base effect.
"With growth expected to rebound in H2FY26, we forecast the industry to achieve 11-12% retail APE growth, supported by private sector growth of 13-14% and LIC's growth of 6-7%," the report stated.
Group APE for the month surged by 31%, predominantly driven by a robust 61% growth from private players. Meanwhile, LIC recorded a 12% growth in Group APE. Overall, the industry's total APE increased by 15%, with the private sector achieving 22% growth and LIC realizing a 5% expansion, as detailed in the report.
–IANS
aar/na
Point of View
It is evident that India's life insurance industry is navigating through a complex landscape, balancing growth against regulatory challenges. The data indicates a promising trend, especially from private players, while LIC's performance highlights the need for strategic adjustments. Overall, a cautious optimism prevails as the sector aims for sustained growth in a competitive environment.
NationPress
06/10/2025
Frequently Asked Questions
What is retail annual premium equivalent (APE)?
Retail annual premium equivalent (APE) is a key metric that reflects the total value of regular premiums plus 10% of new single premiums written within a specific period.
Which company reported the highest growth in retail APE?
HDFC Life reported the highest growth in retail APE at 25% in July 2025.
What is the expected growth for the life insurance industry in H2FY26?
The industry is expected to achieve retail APE growth of 11-12% in H2FY26, with private sector growth projected at 13-14%.
