The life insurance industry delivered strong growth in the first four months of FY26, aided by product diversification and evolving distribution strategies, brokerage firm ICICI Securities said.
Private life insurers registered a 13.7 per cent year-on-year rise in annual premium equivalent (APE), while sum assured expanded 25.1 per cent, underscoring healthy sector momentum.
SBI Life, ICICI Prudential (IPRU Life) and Axis Max Life emerged as top performers in individual sum assured growth, posting growth of 81.7 per cent, 28.2 per cent and 22.7 per cent, respectively, during the 4MFY26 period, ICICI said. HDFC Life also reported a 21.2 per cent rise, reflecting resilient demand across product categories.
Tata AIA, Axis Max Life and HDFC Life led in total APE performance, while IPRU Life and BALIC reported declines, indicating a mixed competitive landscape.
The agency channel, however, faced headwinds in Q1FY26 due to a shift away from high-ticket ULIPs towards guaranteed and protection products. HDFC Life recorded modest agency channel growth of 5.9 per cent, while IPRU Life saw a 19.4 per cent decline. In contrast, bancassurance continued to deliver steady growth, with HDFC Life, SBI Life and Axis Max Life posting year-on-year growth of 10.7 per cent, 6.9 per cent and 16.5 per cent, respectively, the brokerage said.
ICICI said retail protection products, particularly pure term plans, outpaced return-of-premium offerings, boosting sum assured growth relative to APE. SBI Life notably rebalanced its product mix by reducing ROP exposure and focusing on term products to enhance profitability.
On profitability, ICICI Securities highlighted margin improvements across all listed insurers, including LIC, supported by higher volumes and operational efficiencies.
ICICI Securities expects the life insurance sector to sustain its growth trajectory through balanced volume and margin strategies, broader product offerings, digital adoption and stronger distribution networks.