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MOSL: INDIA LIFE INSURANCE (INSURANCE TRACKER)-Private players Individual WRP grows at 12.6% YoY for FY19

India Life Insurance (Insurance Tracker): Private players Individual WRP grows at 12.6% YoY for FY19

 

Private players’ individual WRP growth saw a pick-up in Mar’19 to 18% YoY (17% YoY in Feb’19), while industry growth came in at 10% YoY (13% YoY in Feb’19). Among private players, Birla Sun Life (+33% YoY), Tata AIA (+54% YoY) and Bajaj Allianz (+64% YoY) exhibited robust trend. Amongst listed players, SBI Life/Max Life/IPRU Life reported individual WRP growth of 28%/ 15%/ 14%, while HDFC Life reported a tiny growth of 1% YoY. During FY19 - Max Life / SBI Life / HDFC Life reported 21%/ 15%/ 5% YoY growth in individual wrp while IPRU Life reported 5% YoY decline. LIC, on the other hand, reported flattish YoY growth in individual wrp (+4.5% during FY19) taking industry growth to 10% YoY for Mar’19 (+9% for FY19). 

Private players' individual WRP market share expands to ~58% for Mar'19

Private players' individual WRP market share improved 430bp YoY to ~58% in Mar'19 due to strong 18% YoY growth in Mar'19 (12.6% in FY19). During FY19, Tata AIA, Birla Sun Life, Max Life and SBI Life gained the maximum market share, while ICICI Pru Life/HDFC Life's market share declined 150bp/25bp. In FY19 basis, SBI Life remains the largest private insurer, in terms of total and individual WRP, followed by IPRU Life. On an un-weighted basis, HDFC Life remains the largest insurer with a market share of 7% followed by SBI Life at 6.4%. 

Performance of key private players

The combined market share of the listed players - SBI Life, ICICI Prudential Life, HDFC Life, Max Life- on an individual WRP basis stood at ~62.2% as on FY19 (65.1% in FY18). Bajaj Allianz, Tata AIA life and Birla Sun Life continued to report healthy premium growth and are getting firmly positioned for fifth to seventh largest private insurer. Among key listed players, on an individual wrp basis -

• HDFC Life reported tiny growth of 1% YoY (5% YoY growth in FY19); total un-weighted premium grew 24.9% in Mar'19 (~32% YoY growth in FY19).
• SBI Life grew 28% YoY (15% YoY growth in FY19); total un-weighted premiums grew 26% YoY in FY19
• IPRU reported 14% YoY growth (5% YoY decline in FY19) - 10% average growth in past three months
• Max Life reported 15% YoY growth (21% YoY growth in FY19) - highest growth amongst listed players in FY19