New Delhi, India, February 26, 2025—India’s life insurance industry has witnessed margin declines of 75 to 400 basis points year-on-year in Q3 FY2025 due to a shift towards ULIPs, lower credit protect sales, and new surrender value norms. However, Q4 FY2025 is expected to drive a recovery through volume growth and improved operational efficiencies.
In the first nine months of FY2025, annual premium equivalent (APE) growth for listed private insurers ranged from 11.8% to 17.4%, with stable growth in January. Insurers expect mid-teen APE growth in FY2026 while adjusting to regulatory changes. LIC posted a 9.6% rise in Q1 profit, benefiting from strong group business growth and higher sales of non-participating policies.
