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MOSL: INDIA LIFE INSURANCE (INSURANCE TRACKER)-Private players’ new business WRP growth picks up to 15.4% in Aug-18

India Life Insurance (Insurance Tracker): Private players’ new business WRP growth picks up to 15.4% in Aug-18

 

Private players’ new business weighted received premium (WRP) growth picked up to 15.4% YoY (v/s +12.6% YoY in July-18), in line with industry growth of 13.3% YoY (+4.4% YoY in July-18). New business WRP growth for private players can be ascribed to robust trends for Tata AIA, Birla Sun Life and Bharti Axa Life. Bajaj Allianz, PNB Met Life and Max Life, too, reported healthy growth. Larger listed players SBI Life, ICICI PruLife and HDFC Life reported tepid WRP growth of 11.7%, 7.1% and 11.9% YoY, respectively. LIC’s new business WRP grew 11.4% YoY and its market share improved by 114bp MoM to 51.7%. While private players have started the year on a softer note (FY19YTD growth of 11.5% YoY), we expect growth to recover to 16% YoY in FY19 (as the base effect wanes), driving their WRP market share to ~53% (v/s 51% in FY18).

 Private players’ market share shrinks to 48.3% in Aug (49.9% in FY19YTD)

Private players’ share in total WRP contracted to 48.3% in Aug-18 (-114bp MoM), despite a pick-up in WRP growth to 15.4%. Private players’ market share on an individual WRP basis stood at 57.7% (+89bp MoM). SBI Life had the highest share (~24%) in individual WRP among private players, followed by ICICI PruLife (20.7%). On the other hand, LIC’s new business WRP grew by 11.4% YoY and its market share improved by 114bp MoM to 51.7%.