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News: Life insurance companies reported an 11.6% YoY decline in new business premium (NBP) in February, mainly due to LIC’s weak performance, which saw a 22% drop in premium. According to Life Insurance Council data, total NBP stood at ₹29,985.5 crore, down from ₹33,913.2 crore last year. LIC’s NBP fell to ₹15,514 crore, while private insurers grew by 3.2% to ₹14,471.6 crore. Among private insurers, SBI Life’s NBP fell 18% YoY, while others posted growth with HDFC Life premium up 23.5%, ICICI Prudential Life at 5.3% and Bajaj Allianz Life at 2.9%.
View: While decline in LIC premium impacted industry business accretion, private life insurance have reported muted growth. Thus, absence of any near term trigger could keep valuation in a broad range.
Impact: Neutral