Mar`20 life insurance premiums impacted by Covid-19 - ICICI Securities

* New business premium (NBP), total annualised premium equivalent (APE), and individual APE declined 34%/38%/40% YoY in Mar'20 for private life insurers. FY20 NBP/total APE/Individual APE grew 12%/9%/4.8% YoY respectively for private life insurers.

* Mar'20 premium collections got impacted on account of disruptions in distribution channels and extension of due date for making tax savings investments.

* On MoM basis, in terms of Individual APE/total APE, HDFC life (13%/18%) scored better than SBI Life (11%/10%) and ICICI Prudential (-19%/-64%)

* For FY20, HDFC Life/SBI Life/ICICI Prudential registered NBP growth of 16%/20%/20% YoY, total APE growth of 20%/10%/15% YoY and individual APE growth of 19%/9.1%/-6.4% YoY.  If individual APE would have grown by 15% in March, FY20 individual APE growth would have been 26%, 17% and 2% for HDFC Life, SBI Life and Ipru Life respective.

Source: Investment Guru India