India life insurance APE reaches 12.8% growth in January

APE figures edge higher as insurers struggle to offset last year massive surrender value hits.

India’s life insurance industry extended its recovery in January 2026, supported by growth in both individual and group segments, according to CareEdge Ratings.

Sanjay Agarwal, senior director at CareEdge Ratings, said annualised premium equivalent (APE) growth improved to 12.8% year-on-year in January, slightly higher than last year. 

He said the increase reflects gradually normalising demand. Growth was driven by traction across individual and group businesses, with recurring premium products maintaining steady momentum.

Agarwal added that broader participation across customer segments suggests the industry has largely adjusted to distribution challenges following last year’s revision to surrender value norms. 

CareEdge expects life insurance growth to remain stable at 8% to 11% over the next two years, supported by a favourable regulatory environment, continued product expansion and wider use of digital channels.

Meanwhile, new business premiums rose 21.6% year-on-year to Rs37,478.4 crore in January 2026. 

According to Saurabh Bhalerao, associate director at CareEdge Ratings, the increase was supported by improved performance across both individual and group segments.

The recovery was led by a pickup in group business, with Life Insurance Corporation of India (LIC) maintaining its dominant position. 

Private insurers also posted steady growth, reflecting their expanding regional presence and continued traction in individual segments, where unit-linked insurance plans (ULIPs) remain a key part of the savings mix.

Bhalerao said that with distribution strengthening and digital initiatives such as Bima Sugam under the broader Bima Trinity framework gaining traction, the industry is positioned to sustain stable growth in the medium term.