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MOSL: INDIA LIFE INSURANCE (INSURANCE TRACKER)-Sharp slowdown in individual WRP for private players

India Life Insurance (Insurance Tracker): Sharp slowdown in individual WRP for private players

 

Private players reported a decline of 1% YoY in individual WRP in Nov-18 (Oct-18: +17% YoY) – the lowest in past six months – as industry growth declined to 6.3% (Oct-18: +8.4% YoY). Among private players, Birla SunLife, Kotak Life, Tata AIA and Reliance life exhibited robust trends, restricting a further decline. SBI Life reported another month of modest growth (+10% YoY) in individual WRP. HDFC Life reported its first individual WRP decline for the year, resulting in FY19 YTD growth of 11.5% YoY. IPRU reported the biggest decline (-24% YoY) in its individual WRP in six months. LIC, on the other hand, reported a fall of 12.4% YoY (flat in Oct-18) in its individual WRP, leading to a 6.3% YoY decline at industry level. YTD growth for industry now stands at 7.2%, led by growth of ~10% YoY for private players and 3.7% YoY for LIC.

Private players’ market share improves to 57% (56.5% in FY19YTD)

Private players reported 3% MoM growth in individual WRP, with their market share at 57% in Nov-18 (+87bp MoM). Private players’ market share on a total WRP basis stood at 55.6% (+330bp MoM). In FY19 YTD, Tata AIA, SBI Life and Birla SunLife have gained the maximum market share, while ICICI PruLife has ceded the most. SBI Life remains the largest private insurer in terms of both total WRP and individual WRP, followed by IPRU. On an un-weighted basis, HDFC Life remains the largest insurer.