The investment income of the life insurance industry declined 6.63 per cent in FY23 to ₹3.89 lakh crore.

According to the latest data from the Insurance Regulatory and Development Authority of India (IRDAI), the trends in investment income including capital gains and other income of life insurance industry were mutually divergent. 

While the public sector insurer recorded 7.25 per cent growth, private sector insurers registered a 39.86 per cent decline in investment income in the year 2022-23.

The total paid-up capital also showed declined. As of March 2023, the total paid-up capital of the life insurance sector stood at ₹34,957 crore, reflecting a 1.66 per cent decline compared to the previous year.

 “This decrease was primarily attributed to a ₹1,850-crore reduction in the paid-up capital of Exide Life Insurance Company due to its acquisition by HDFC Life Insurance,’‘ IRDAI said. 

Nevertheless, ten other insurers injected an additional ₹1,262 crore into the life insurance industry. Consequently, the net impact on the total paid-up capital for the fiscal year 2022-23 was a decrease of ₹590 crore, according to the regulator’s data. 

Of the 24 life insurers in operation during 2022-23, 17 companies reported profits. Profits of the life insurance industry grew 452 per cent in 2022-23 with a profit after tax of ₹42,788 crore as against ₹7,751 crore in 2021-22.

The public sector reported a 800 per cent increase in profits while private insurers together reported a 72.36 per cent increase in profits in 2022-23 while the dividend paid by private life insurers stood at ₹925.88 crore for 2022-23.

Non-Life Insurers

The investment income of all general insurers during 2022-23 was ₹38,839 crore (₹32,546 crore in 2021-22) registering a growth of 19.34 per cent. 

The growth in investment income of public sector insurers, private sector insurers, standalone health insurers, and specialised insurers was 34.54 percent, 6.35 per cent, 21.48 per cent, and 2.06 per cent respectively, according to IRDAI.