India’s life insurance industry recorded a 10 per cent year-on-year growth in retail annual premium equivalent (APE) for July 2025, reflecting steady performance despite regulatory headwinds and a high base. According to Emkay Global Financial Services Ltd, private life insurers drove the expansion with a 14 per cent rise, while LIC’s retail APE remained nearly flat at 0.4 per cent.
Retail APE, which includes regular premiums and 10 per cent of new single premiums, rose 6.4 per cent year-to-date, with private sector growth at 10 per cent. On a two-year compound annual growth rate basis, the industry posted a 14 per cent increase for July.
HDFC Life led the pack with a 25 per cent surge in retail APE, outperforming expectations. Axis Max Life reported 14 per cent growth, moderating after a strong run in previous months. SBI Life posted a 9 per cent increase, while IPRU Life saw a 3 per cent decline due to a large base effect.
The report noted that the industry is likely to maintain a subdued growth trajectory in the first half of FY26, citing the impact of new surrender regulations and a high base in H1FY25. However, growth is expected to revive in the second half, with projected retail APE expansion of 11–12 per cent, led by 13–14 per cent growth in the private sector and 6–7 per cent for LIC.
Group APE for July grew 31 per cent, driven by a robust 61 per cent increase from private insurers. LIC contributed a 12 per cent rise in Group APE. Overall, total APE for the industry expanded 15 per cent, with the private sector clocking 22 per cent growth and LIC registering a 5 per cent increase.
