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MOSL: INDIA LIFE INSURANCE-Private players’ individual WRP up ~31% YoY (two-year CAGR of 10%) in Jul’21

INDIA LIFE INSURANCE: Private players’ individual WRP up ~31% YoY (two-year CAGR of 10%) in Jul’21

 

• Private players' individual weighted received premium (WRP) grew 30.5% YoY in Jul'21 (two-year CAGR of 10%; +16% in Jun'21); the industry posted growth of 15% YoY (two-year CAGR of 7%; +10% in Jun'21). At FY22YTD, private players' individual WRP is up 27.8% YoY (two-year CAGR of +2.3%). The same for the industry stands at 15.9% YoY (two-year CAGR of +0.6%).
• Among the listed players, (a) SBILIFE posted robust growth of ~52% YoY in Jul'21 (two-year CAGR of +14%) v/s decline of 14% YoY in Jul'20; (b) IPRULIFE was up 25.3% YoY (two-year CAGR of -11%) v/s decline of 36% YoY in Jul'20; (c) HDFCLIFE reported growth of ~18% YoY (two-year CAGR of +15.2%), and (d) MAXLIFE grew 15.6% YoY (two-year CAGR of +6.4%).
• Among the mid-sized players, (a) Tata AIA / Bajaj Allianz reported strong growth of 40%/41% YoY (two-year CAGR of +29%/34%), (b) Birla Sun Life was up 17% YoY (two-year CAGR of +8.3%), and (c) Kotak Life posted muted growth of 3% YoY (two-year CAGR of +2%).
• LIC reported decline of 4.2% YoY (two-year CAGR of 2.5%; +1.4% in Jun'21) in individual WRP. In FY22YTD, LIC's individual WRP grew 1.3% YoY (two-year CAGR of -1.8%).
• Since the moderation witnessed in May'21, we have seen a gradual uptick in growth over the past few months, with healthy trends reported across most players in Jul'21. With the continued easing of restrictions and opening up of the economy, we expect strong traction in premium growth over FY22, with a continued focus on Non-PAR/Annuity, while ULIP would see gradual recovery. We prefer MAXLIFE and IPRU.