This increase was mainly attributed to infusion of ₹1,600 crore of additional capital into Tata AIA Life Insurance Company Limited and ₹1,040 crore capital invested by the 12 life insurers in the life insurance industry.
Consequently, the net impact on total paid-up capital for the financial year 2024-25 was an increase of ₹2,641 crore, according to the latest data from the Insurance Regulatory and Development Authority of India (IRDAI).
During the year, one private sector life insurer had recovered ₹70 crore and five private sector life insurers had raised a total of ₹4,490 crore under other forms of capital. As at March 2025, the total amount of other forms of capital in life insurers stood at ₹9,651 crore.
Company
The renewal premium continues to make up the largest share of the total premium underwritten by life insurers in 2024-25 at 55 percent, with the balance contributed by the premium for new business.
New business premium growth was 5.12 percent, compared to 8.08 percent for renewal business. Single premium products continue to play an important role for public sector life insurers contributing 38.82 percent of total premium, while for private sector life insurers it was 20.90 percent.
Gain
Life insurance sector profits grew 18.14 per cent in 2024-25, with profit after tax (PAT) of ₹56,006 crore, up from ₹47,407 crore in 2023-24.
Of the 25 life insurers that operated between 2024 and 2025, 18 companies reported profits. Life insurance sector profits grew by 18.14 percent in 2024-25. Public sector life insurers reported a profit increase of 18.38 percent, while private sector life insurers collectively reported a profit increase of 16.69 percent in FY25.
The dividend paid by private sector life insurers (including interim dividend) stood at ₹1,714 crore in FY25. The public sector life insurer has paid out ₹3,795 crore in dividends to its shareholders during the financial year 2024-25, according to data from the annual report 2024-25 released by the Insurance Regulatory and Development Authority of India (IRDA).
New FDI norms
The impact of the new FDI norms allowing 100 percent FDI in the insurance sector is unlikely to be immediate but could be visible in about one to two years, according to industry experts. “Given the current state of affairs in the life insurance sector, it may take some time for foreign investors to fully step in. The same has happened when the cap was increased to 74 percent earlier,” said MD & CEO of a private insurance company. However, general insurance will likely be the first to see any progress in this regard, he added.
Published on January 6, 2026
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