Private players’ individual weighted received premium up 5% in May

The individual weighted received premium (WRP) of private life insurers grew 5% year-on-year in May, while the overall industry posted a decline of 8.9%, despite a low base.

In May 2020, individual WRP had declined by around 32% and 20% for private players and industry, respectively, due to the outbreak of covid-19 and the ensuing lockdown. The second wave, along with the lockdown in major states, weighed down on overall performance in May 2021. In FY22 so far, private players’ individual WRP grew 37.4% YoY. The same for the industry grew 22.7% YoY, said Motilal Oswal Financial Services in an insurance sector report.

Among listed players, ICICI Pru Life posted a growth of around 28% YoY in May against a decline of 52% in May 2020. HDFC Life reported a growth of around 17% against a decline of 33% in May 2020. Max Life grew at 12.5% vs a decline of 20% in May 2020. SBI Life posted a decline of 5.6% YoY. Among mid-sized players, Bajaj Allianz reported a growth of 32%. Other players like Tata AIA/Birla Sun Life/Kotak Life reported a decline of 8%, 15%, 31%.

LIC reported a decline of 22% in individual WRP against a decline of 3% in May 2020. In FY22 so far, LIC’s individual WRP has risen 7% YoY, as per the report.

"Although rising Covid-19 cases and lockdown in key states could impact overall growth in the near term, we expect premium growth to see strong traction over FY22E with a continued focus on Non-PAR/Annuity and Protection segment, while unit-linked insurance plans (ULIP) is witnessing a gradual recovery. MAX LIFE and IPRULIFE are our preferred picks."

Performance of key private players

The combined market share of listed players – SBI Life, IPRU Life, HDFC Life and MAX Life– on an individual WRP basis stood 60.2% in May 2021 (vs 61% in FY21).

Tata AIA, Bajaj Allianz, and Birla Sun Life are getting firmly positioned among the 5-7th largest private insurers on an Individual WRP basis. Among the key listed players on an Individual WRP basis -

HDFC Life reported a growth of 16.6% yoy; total unweighted premium grew 46.6% YoY

SBI Life reported a decline of 5.6% YoY; total unweighted premium grew 1.6% YoY

IPRU Life reported a growth of 27.7% YoY; total unweighted premium declined 3.9% YoY

Max LIFE reported a growth of 12.5% YoY; total unweighted premium grew 25% YoY

Source: Live Mint