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According to the latest Insurance report from Emkay Global Financial Services, the private life insurance industry reported robust growth of 18.1% in Retail APE growth in Feb-24, driven by strong 20.4% growth in the private sector. Following robust growth in February 2024, the industry experienced a 9.2% increase in Retail APE for YTDFY24. Private sector growth surged by 13.1%, while LIC saw a more modest growth of 2%. Individual policy sales for the industry increased by 9.2% in February 2024 compared to the previous year, with private players registering a significant 16.1% growth and LIC achieving a more moderate 6.3% growth year-on-year.

The private sector's growth in Retail APE primarily stemmed from an increase in the number of individual policies sold, whereas LIC's premium growth is likely attributed to a combination of policy growth and average ticket size expansion. Overall, the industry saw a robust 25.8% growth in APE in February 2024, with the private sector expanding by 24.7% and LIC achieving a 27.7% growth rate. This substantial growth in APE was primarily fuelled by a 58% surge in Group APE across the industry, supported by a strong 62% increase in LIC's Group APE and a 52% rise in the private sector's Group APE.

In February 2024, Max Life, among private listed players, demonstrated a robust 34.4% growth in Retail APE, with a concurrent 25% increase in the number of individual policies sold. IPRU Life sustained its growth trajectory, achieving a 33.9% rise in Retail APE, supported by a nearly 36% surge in individual policies. HDFC Life and SBI Life both reported strong Retail APE growth rates of 27.8% and 25.8% respectively, propelled by increases of 21% and 9% in the number of individual policies sold. Among other private players, Bajaj Allianz experienced significant Retail APE growth of 34.2%, whereas Tata AIA Life observed more subdued growth, with an increase of 0.1% in February 2024.

With stock price increase of 71%, LIC also emerged as the top performer over the past year amongst its listed insurance peers.

Although the industry is experiencing significant growth momentum in February 2024, it is
anticipated that there will be some moderation in growth in March 2024 compared to the
exceptional sales in March 2023, primarily due to taxation changes. Additionally, the growth of individual players in March 2024 will depend largely on the strength of growth
experienced in March 2023.

While insurers have adjusted to the new reality, after a host of regulatory changes by the IRDAI and
personal taxation changes by the Union Government present valuations appear to disregard the
robust franchise strength of listed insurers and their medium-term growth prospects. Considering
the attractive valuations, Life Insurance stocks present an appealing risk-reward proposition.

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