Private players’ individual WRP declines ~7% YoY in Jul`20 By Motilal Oswal

LIC reports growth of ~10% YoY; market share increases 230bp over FY21YTD

* Private players’ individual weighted received premium (WRP) declined 7.1% in Jul’20 (similar to the decline in Jun’20) while industry posted muted decline of 0.3% YoY (v/s -1.4% YoY in Jun’20). The overall decline has moderated considerably from the levels seen over Mar-May’20. For FY21YTD, private players’ individual WRP declined 18.1% YoY while for the industry, it dropped 12.6% YoY.

* Amongst listed players, HDFC Life reported positive trend with growth of 12% YoY, Max Life witnessed modest decline of 2% while SBI Life witnessed decline of 14% YoY. On the other hand, IPRU Life remained under pressure and posted 36% YoY decline.

* Mid-sized players reported positive trends. Bajaj Allianz/Tata AIA posted 29%/18% YoY growth while Birla Sun Life/Kotak Life reported modest growth of 1% YoY each.

* LIC continued to report positive trend with growth of 9.6% YoY (v/s 7.5% YoY in Jun’20) in individual WRP. During FY21YTD, LIC’s individual WRP declined 4.8% YoY.

Private players’ individual WRP share plunges to ~55% in Jul’20 (55% as at FY21YTD)

Private players’ individual WRP market share contracted ~245bp to ~55% in Jul’20 (v/s 58% in Jun’20) as private players reported decline of ~7% (v/s LIC’s growth of ~10%). Market share for LIC thus increases ~230bp to 45.1% in FY21YTD. During FY21YTD, SBI Life (10.8%) remained the largest private insurer in terms of individual WRP, followed by HDFC Life (10.1%) and IPRU life (6.3%). On an un-weighted basis, SBI Life was the largest private insurer with market share of 6.9%, followed by HDFC Life (6.4%) and IPRU Life (3.2%).

Performance of key private players

The combined market share of listed players – SBI Life, ICICI Prudential Life, HDFC Life and Max Life– on an individual WRP basis stood at ~63.2% as at Jul’20 (v/s 62.9% in FY20). Tata AIA, Bajaj Allianz and Birla Sun Life are also getting firmly positioned amongst the 5-7th largest private insurers on individual WRP. Amongst the key listed players, on the basis of individual WRP –

* HDFC Life reported growth of 12.2% YoY (-10.1% YoY in FY21YTD); total unweighted premium grew ~41% YoY (-14.0% YoY in FY21YTD).

* SBI Life reported decline of 14.4% YoY (-28.3% YoY in FY21YTD); total unweighted premium grew 42% YoY (+10.5% YoY in FY21YTD).

* IPRU Life reported decline of 36.5% YoY (-45.3% YoY in FY21YTD); total unweighted premium declined 10.1% YoY (-25.9% YoY in FY21YTD).

* Max Life reported decline of 2.0% YoY (-3.0% YoY in FY21YTD); total unweighted premium grew 5.6% YoY (+1.1% YoY in FY21YTD).

Source: Investment Guru India

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