India’s life insurance industry saw a moderation in retail annualised premium equivalent (APE) growth to about 9% year-on-year (YoY) in January 2026, with private insurers slowing further while Life Insurance Corporation of India (LIC) outperformed on a favourable base, according to a latest report by Emkay Global.

The report highlighted that the private sector posted around 7% retail APE growth during the month, while LIC logged a healthier 15% growth YoY, aided by a weak base in January 2025. On a two-year CAGR basis, the industry delivered a modest 10% retail APE growth in January, driven by the private sector clocking around 13% growth, while LIC saw muted growth of about 3%.

“While the growth momentum has moderated in Jan-26, we expect the industry’s Retail APE to grow 10-11% in FY26E, with private players expected to grow faster than the industry at 13-14%; we expect LIC to deliver 4-5% growth,” Emkay Global said in its report.

The report noted that the industry growth has been supported by steady demand for protection products, improving distribution productivity and continued traction in group business, although the pace of growth has moderated from earlier months.

Axis Max Life outshines peers

Among private listed players, Axis Max Life emerged as the fastest-growing insurer, reporting a strong 29% year-on-year retail APE growth in January. SBI Life reported a muted 4% growth on a high base, while HDFC Life saw a 7% year-on-year decline. ICICI Prudential Life reported around 5% growth in retail APE, while Canara HSBC Life clocked about 12% growth, albeit on a favourable base, the data showed.

Group business remained a key support for overall industry growth. Emkay Global noted that industry group APE grew about 27% year-on-year during January, driven by a robust 36% growth at LIC, while the private sector logged growth of around 19%.

As a result, total APE for the industry rose about 13% year-on-year, with LIC reporting a strong 22% growth, while the private sector posted a comparatively lower 9% growth.

The data showed that LIC also gained market share during the month, with its retail APE share rising to 29.4%, up 140 basis points YoY. The number of individual policies sold across the industry increased by around 9% YoY in January, with LIC recording about 10% growth in policy sales and the private sector growing around 8%.

GST 2.0 boosts growth recovery for life insurers

Separately, JM Financial in a report said that recent regulatory changes under GST 2.0, combined with low deposit rates and a weak base, have helped life insurers catch up on growth during FY26.

While year-to-date private-sector growth is trending at around 12%, slightly lower than the 13% levels seen in the first nine months of the year, the brokerage expects momentum to improve in the final months of FY26.

JM Financial data showed that industry retail weighted received premiums (RWRP) increased 9% year-on-year to about ₹12,000 crore in January 2026. Private life insurers underwrote around ₹8,500 crore during the month, with growth slowing to 7%, while LIC outperformed the private sector with 15% YoY growth.

The report also flagged margins as a key monitorable for the sector, noting that while some insurers disappointed on profitability in the December quarter, others outperformed weak expectations.