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MOSL: INDIA LIFE INSURANCE (INSURANCE TRACKER): Private players’ new business WRP growth moderates to 12.6% YoY in Jul-18

India Life Insurance (Insurance Tracker): Private players’ new business WRP growth moderates to 12.6% YoY in Jul-18

 

Private players’ new business WRP growth moderated to 12.6% YoY (v/s +15.5% YoY in June-18), in line with the industry growth of 4.4% YoY (v/s 5.6% YoY in June-18). Among the private players, the growth was led by a robust trend for Bharti Axa Life, DLF Pramerica and Tata AIA, while Shriram Life, Kotak Life and Max Life also reported a healthy growth. The larger listed players, SBI Life, ICICI Pru Life and HDFC Life reported a tepid WRP growth of 9.2%, (4.6)% and 8% YoY, respectively. Despite LIC’s new business WRP declining by 2.5% YoY, its market share improved by 271bp MoM to 50.5%. While the year has kicked off on a softer note for the private players (FY19YTD growth of 9% YoY), we expect the growth to recover to 16% YoY in FY19 (as the base effect wanes), thereby driving their WRP market share to ~53% (v/s 51% in FY18).

 Private players’ market share declines to 49.5% (v/s 50.5% in FY19YTD)

The market share of private players in the total WRP declined to 49.5% in Jul-18 (-271bp MoM), led by a moderation in the aggregate WRP growth to 12.6%; LIC reported a 2.5% YoY decline. The market share of private players on individual WRP basis stood at 56.9% (+93bp MoM). For the month, among the private players, SBI Life remained the largest with a WRP market share of 24%, followed by IPRU Life with 21.4%.