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Published on 19/07/2019 9:45:42 AM | Source: Motilal Oswal Services Ltd

Insurance Sector - Private players` individual WRP grows 23.8% YoY in Jun`19 - Motilal Oswal

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Private players’ individual WRP grows 23.8% YoY in Jun’19

Individual WRP market share for private players expands ~350bp to 61.1%

Private players’ individual weighted retail premium (WRP) growth remained strong at 23.8% YoY in Jun’19 (v/s +27.0% YoY in May’19), while industry growth came in at 13.3% YoY (v/s +12.5% YoY in May’19). In FY20 YTD, private players’ individual WRP grew 23.5% YoY, while industry growth came in at 14.3%. Among private players, Tata AIA (+56% YoY), Bajaj Allianz (+36% YoY) and Birla Sun Life (+22% YoY) exhibited robust trends. Among listed players, HDFC Life/SBI Life/Max Life reported individual WRP growth of 87%/25%/20%, while IPRU Life reported muted growth of 1% YoY. LIC, too, reported flattish growth (-0.1% YoY) in individual WRP (-2.6% in May’19), taking industry growth to 13.3% YoY in Jun’19 (12.5% for May’19).

 

Private players’ individual WRP market share at 61.1% for Jun’19

Private players’ individual WRP market share expanded 352bp MoM to ~61% in Jun’19 due to a sharp pick-up in growth of Max Life and ICICI Pru Life. In Jun’19, Max Life, ICICI Pru Life and Birla Sun Life gained the maximum market share, while SBI Life’s market share shrank by 35bp. SBI Life remained the largest private insurer in terms of individual WRP in the month, followed by HDFC Life and IPRU life. On an un-weighted basis, HDFC Life remains the largest insurer with a market share of 4.2%, followed by SBI Life (4.1%).

 

Performance of key private players

The combined market share of the listed players – SBI Life, ICICI Prudential Life, HDFC Life and Max Life – on an individual WRP basis stood at ~64.7% as on Jun’19 (62.2% in FY19). Tata AIA, Bajaj Allianz and Birla Sun Life continued reporting healthy premium growth, getting firmly positioned to be among the 5-7th largest private insurers. Among key listed players, on an individual WRP basis (in Jun’19)…

* HDFC Life reported growth of 87% YoY (+63% YoY in FY20 YTD); total unweighted premium increased 21.0% (+52% YoY in May’19).

* SBI Life reported growth of 25% YoY (+35% YoY in FY20YTD); total un-weighted premium increased 28.1% YoY.

* IPRU reported muted 1% YoY growth (+1% YoY in FY20 YTD); total un-weighted premium increased 26.1% (+26.6% YoY in May’19).

* Max Life reported 20% YoY growth (+23% YoY in FY20 YTD); total un-weighted premium grew 15.8% (+21.6% YoY in May’19).

 

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