Paid-up capital of life insurers up 7.2% in FY25

The life insurance sector reported a total paid-up capital of ₹39,714 crore for 2024-25, marking a 7.12% year-on-year increase. This growth stemmed largely from capital infusions, including a ₹1,600 crore injection by Tata AIA Life Insurance and ₹1,040 crore contributed collectively by 12 insurers.

According to IRDAI data, the net rise in paid-up capital for the fiscal year reached ₹2,641 crore. The year also saw one private insurer recalling ₹70 crore in capital, while five others raised ₹4,490 crore through Other Forms of Capital. By March 2025, total Other Forms of Capital held by life insurers stood at ₹9,651 crore.

Business

Renewal premiums continued to dominate life insurers’ premium income at 55%, with new business premiums accounting for the remainder. New business premiums grew 5.12%, compared to an 8.08% rise in renewal premiums. Single-premium products constituted 38.82% of public sector insurers’ total premiums versus 20.90% for private insurers.

Profits

Industry profits surged 18.14% in 2024-25, with total profit after tax reaching ₹56,006 crore (up from ₹47,407 crore in 2023-24). Eighteen of 25 life insurers reported profits, with public sector entities seeing an 18.38% profit increase and private sector firms posting 16.69% growth.

Dividend payouts totaled ₹1,714 crore by private insurers and ₹3,795 crore by the public sector insurer during FY25, as per IRDA’s annual report.

New FDI Norms

Industry experts anticipate delayed effects from the 100% FDI allowance in insurance, predicting visible impact within 1-2 years. “Foreign investors may adopt a cautious approach, mirroring the pattern seen when the cap was raised to 74% previously,” noted a private insurer CEO. The general insurance segment is expected to see faster FDI traction.

Published on January 6, 2026