EUR 120.00 For Business Accounts Only

MOSL: INDIA LIFE INSURANCE: Individual WRP for private players grows ~16% YoY

INDIA LIFE INSURANCE: Individual WRP for private players grows ~16% YoY (two-year CAGR of 4%) in Jun’21

 

LIC grows ~1% YoY (two-year CAGR of 4.4%), market share of private players grows ~59% over 1QFY22

• Individual weighted received premium (WRP) for private players grew 16.4% YoY in Jun’21 (two-year CAGR of 4%; +5% in May’21), while the industry posted a growth of 10% YoY (two-year CAGR of 4.2%; -9% in May’21). In 1QFY22, Individual WRP for private players grew 26.3% YoY (two-year CAGR of -1.4%). The same for the industry grew 16.4% YoY (two-year CAGR of -2.4%).
• Among listed players, IPRU posted a strong growth of ~43% YoY in Jun’21 (two-year CAGR of -10.1%) v/s a decline of 44% YoY in Jun’20. MAXLIFE reported a growth of ~17% YoY (two-year CAGR of 15.2%), while SBILIFE grew 12.5% YoY (two-year CAGR of 3.4%) v/s a decline of 5% YoY in Jun’20. HDFCLIFE posted flattish growth (two-year CAGR of -1.7%) v/s a decline of 3% YoY in Jun’20.
• Among midsized players, Bajaj Allianz reported a strong growth (41% YoY, two-year CAGR of 26.4%), while players like Tata AIA/Birla Sun Life grew 13%/10% YoY (two-year CAGR of 15.3%/12.8%). Kotak Life reported a decline of 5% YoY (two-year CAGR of +8.3%) v/s a growth of 24% YoY in Jun’20.
• LIC reported flattish growth (~1.4% YoY, two-year CAGR of 4.4%; -22% in May’21) in Individual WRP. During 1QFY22, LIC’s Individual WRP grew 4.3% YoY (two-year CAGR of -3.8%).
• Although the second COVID wave and lockdown in key states impacted growth in May’21, we have seen a gradual pickup in Jun’21 across most players. With further easing of restrictions and opening up of the economy, we expect premium growth to see a strong traction over FY22, with a continued focus on Non-PAR/Annuity, while ULIP will witness a gradual recovery. Our top ideas are MAXLIFE and IPRU.