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India's private life insurance sector maintained healthy growth momentum in June 2026, with overall annualised premium equivalent (APE) growth accelerating to 18 per cent year-on-year, driven by strong performance from Tier-II insurers, according to a report by Kotak Institutional Equities.
Industry-wide APE growth improved to 15 per cent in June from 11-12 per cent in May, the report stated. Individual APE growth for private insurers rose to 14 per cent year-on-year in June from 12 per cent in May. For the first quarter of FY27, individual APE growth stood at 15 per cent. Private sector group APE surged 74 per cent year-on-year during the month, supporting overall premium growth. The top four private life insurers also witnessed a recovery, reporting 14 per cent year-on-year APE growth in June compared with around 5 per cent in May. Tier-II insurers continued to outperform the top four players for the eighth consecutive month. Private insurers excluding the top four posted 23 per cent year-on-year APE growth in June, while the strongest growth among Tier-II players stood at 29 per cent. For the first quarter of FY27, private insurers excluding the top four recorded around 23 per cent year-on-year APE growth, compared with around 14 per cent for the top four insurers. Despite the strong premium growth, the report noted that growth in sum assured moderated to 11 per cent for the private sector, down from 60 per cent in April and the 27-53 per cent range seen during the second half of FY26. "We expect the rally in sum assured/term business to continue and will track the SA growth trends with anxiety," the report said. (ANI)
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