India’s life insurers have shown a smart recovery from the covid-19 pandemic that hit businesses in the first quarter of FY21. But for their shares to reflect this, investors would prefer to wait for a few more months.
Latest data from the sector regulator shows that private life insurers saw their new business premium collection growing by 13.7% year-on-year (y-o-y) in August, much better than around 6% rise in July.
For the June quarter, private life insurers had seen a sharp contraction in new business premium. The improvement in July and August augurs well for insurers, but the key will be to sustain the numbers. The management commentary that followed June quarter results has been positive in terms of recovery. Within private players, HDFC Life Insurance showed a sharp recovery with 14% growth in individual annualized premium equivalent (APE). HDFC Life has been able to push its products more than