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Good start for the year

Growth in the non-life industry picked up to 12% yoy in April 2025 from the muted (-)3% to 7% in the past six months. Growth in commercial lines has picked up, likely driven by the tightening of reinsurance rates. Private players lost market share to PSUs in both motor and commercial lines. Growth remains muted at 7% for ICICI Lombard, driven by weakness in motor and group health. Star Health reported a sequential pick-up in retail growth to 11%.

Commercial lines pick up

Commercial lines such as Fire, Engineering and Liability reported strong 12-16% GWP growth in April 2025. Weakness in pricing in the commercial lines after the removal of IIB-mandated rates led to muted 1% growth in these segments. While trends are positive for the sector, these are still early days. Reinsurers may have tightened pricing, prompting the rise in growth in commercial lines. Growth in key retail segments such as motor and retail health remained moderate at 10-11% yoy during the month.

PSUs fare better

SAHIs and private GIs reported a muted 9% yoy GWP growth in April 2025, but PSUs reported strong 19% yoy growth. PSUs have gained share in commercial lines and retail segments such as motor OD and TP. In the Fire business, PSUs grew 29% yoy, leading to a 300 bps market share gain of 30%; private players lagged with 11% yoy GWP growth. While motor premium growth was moderate at 11% during the month, PSUs reported strong 25% growth in the segment and private players lagged at 6% growth.

Player-wise trends

PSUs and unlisted players fared better during April 2025, as they stepped up on group health, motor business and commercial lines.

* Weakness in motor and group health dragged growth for ICICI Lombard. GWP growth was muted at 7% yoy for ICICI Lombard, led by weakness in motor and group health. Motor’s growth remains weak at 9% yoy, (-)4% to 7% in the past five months. Elevated competitive intensity has likely led to pricing pressure and muted 4% growth in group health. Growth in fire and retail health picked up to 14% and 34% yoy in April 2025 from (-)6% and 25% in FY2025, respectively.

* Moderate pick-up in growth for Star Health. Growth in the retail business picked up to 11% in April 2025 from 6-10% in the previous six months. Retail growth has moderated from 20% in April 2024 due to the impact of the 1/n rule. Group business continues to run down (down 49% yoy).

* SBI grew at a fast pace. SBI General reported strong 43% yoy GWP growth, led by a pick-up in motor, group health and commercial lines. SBI continued to scale up the motor business, reporting 23% GWP growth, 16-20% growth in the past three months. Group health and commercial lines tend to be lumpy.

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