Published on 14/03/2019 10:16:29 AM | Source: Motilal Oswal Securities Ltd

Insurance Sector - Private players Individual WRP growth recovers to 17% YoY By Motilal Oswal

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Private players Individual WRP growth recovers to 17% YoY

Private players’ individual WRP growth saw a pick-up in Feb’19 to 17% YoY (10% YoY in Jan’19), while industry growth came in at 13% YoY (9% YoY in Jan’19). Among private players, Birla Sun Life (+60% YoY), Tata AIA (+52% YoY) and Bajaj Allianz (+33% YoY) exhibited robust trend. Amongst listed players, SBI Life/Max Life/IPRU Life reported individual WRP growth of 30%/ 27%/ 8%, while HDFC Life reported a 6% YoY decline. During FY19 YTD - Max Life / SBI Life / HDFC Life reported 22%/ 13%/ 6% YoY growth in individual wrp while IPRU Life reported 7% YoY decline. LIC, on the other hand, reported 7% YoY growth in individual wrp (+5.6% during FY19 YTD) taking industry growth to 13% YoY for Feb’19. Private players’ individual WRP market share expands to ~59% for Feb’19


Private players’ individual WRP market share improved 220bp YoY to ~59% in Feb’19

due to strong 17% YoY growth in Feb’19 (11.4% in FY19 YTD). During FY19 YTD, Tata AIA, Birla Sun Life, Max Life and SBI Life gained the maximum market share, while ICICI Pru Life/HDFC Life’s market share declined 187bp/17bp. On FY19 YTD basis, SBI Life remains the largest private insurer, in terms of total and individual WRP, followed by IPRU Life. On an un-weighted basis, HDFC Life remains the largest insurer with a market share of 7% during FY19 YTD followed by SBI Life at 6.7%.


Performance of key private players

The combined market share of the listed players – SBI Life, ICICI Prudential Life, HDFC Life, Max Life– on an individual WRP basis stood at ~64% as on FY19 YTD. Bajaj Allianz, Tata AIA life and Birla Sun Life continued to report healthy premium growth and are getting firmly positioned for fifth to seventh largest private insurer. Among key listed players, on an individual wrp basis –

* HDFC Life reported 6% YoY decline (6% YoY growth in FY19 YTD); total unweighted premium declined 0.5% in Feb’19 (~34% YoY growth in FY19 YTD).

* SBI Life grew 30% YoY (13% YoY growth in FY19 YTD) – the highest in last 14 months.

* IPRU reported 8% YoY growth (7% YoY decline in FY19 YTD) – 9% average growth in past two months.

* Max Life reported 27% YoY growth (22% YoY growth in FY19 YTD) – highest growth amongst listed players on YTD basis.


Mutual fund AUM declines 0.9% MoM to INR23.1t; inflows decline to INR44b

Mutual fund AUM declined 0.9% MoM to INR23.1t, mainly led by 4.2%/1.6%/1.6% decline in money market instruments/ balanced funds/ gold ETFs. Also, income schemes/infra debt funds declined 0.2%/0.5%. Net inflows for the month declined 20% MoM to INR44b. Equity schemes, balanced funds and ELSS together formed 37.1% of the total AUM v/s 36.9% in Jan’19.


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