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MOSL: INDIA LIFE INSURANCE (INSURANCE TRACKER)-New business growth softens to 13% YoY

India Life Insurance (Insurance Tracker): New business growth softens to 13% YoY

 

Private players reported 13.5% YoY growth in new business weighted received premium (WRP) in February 2018, led by strong growth trends for HDFC Life, Max Life, Tata AIA and Kotak Life. ICICI PruLife continued to report softer trends (14% YoY decline in new business WRP) after reporting strong growth earlier during most of FY18. SBI Life also reported a moderation in new business growth at 17% YoY (lowest during FY18YTD) however this appears to be seasonal in nature. LIC reported new business WRP growth of 12.2% YoY on a benign base; however, on a sequential basis, the trend was flattish, whereas there was a 10% MoM decline for private players. Combined growth for the industry, thus  declined 5.7% MoM in February 2018. During FY18 YTD basis, the industry has grown at ~16% YoY, led by 20.5% growth for private players, while  LIC reported relatively modest growth of ~11%.

 Private players’ market share declines to 55% in Feb-18 (51.4% in FY18YTD)

Private players’ market share in Total APE declined to 54.6% in February 2018 (-282bp MoM decline), led by 12.6% MoM decline in individual business WRP vs 3% MoM decline for LIC. Private players like SBI life, HDFC life reported MoM decline of 50.8%/12% in individual new business WRP whereas ICICI Prudential life, Max life and kotak life reported modest growth of 5.7%/20.7%/21% respectively. ICICI Prudential, Kotak Life and Max life were the key market share gainers during the month with in the individual APE segment. SBI Life remains the largest life insurer amongst private players with an industry market share of 13.1% in Individual wrp.