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Published on 23/09/2019 9:05:18 AM | Source: Motilal Oswal Services Ltd

Insurance Sector - Private players` individual WRP grows 22% YoY in Jul`19 By Motilal Oswal

Posted in Broking Firm Views - Sector Report| #Insurance Sector #Motilal Oswal #Sector Report

Private players’ individual WRP grows 22% YoY in Jul’19

Individual WRP market share for private players expands ~240bp YoY to 59.2%

Private players’ individual weighted received premium (WRP) growth remained strong at 21.8% YoY in Jul’19 (v/s +23.8% YoY in Jun’19), while industry growth came in at 16.9% YoY (v/s +13.3% YoY in Jun’19). In FY20 YTD, private players’ individual WRP grew 23.0% YoY; industry growth came in at 15.1% YoY. Amongst private players, Tata AIA, Bajaj Allianz and Birla Sun Life exhibited robust trends with each growing 40% YoY. Among listed players, HDFC Life/SBI Life/Max Life reported individual WRP growth of 58%/ 24%/ 48%, while IPRU Life reported decline of 1% YoY. LIC reported 10.4% YoY growth (-0.1% YoY in Jun’19) in individual WRP, taking industry growth to 16.9% YoY in Jul’19 (13.3% in Jun’19).

 

Private players’ individual WRP market share at 59.2% for Jul’19

Private players’ individual WRP market share expanded ~240bp YoY to ~59.2% in Jul’19 on the back of ~22% YoY growth while LIC grew at 10.4% YoY. In Jul’19, SBI Life remained the largest private insurer in terms of individual WRP, followed by IPRU Life and HDFC Life. On an un-weighted basis, HDFC Life remains the largest private insurer with market share of 6.5% (+230bp YoY), followed by SBI Life at 6.2% share and IPRU Life at 4.4% share.

 

Performance of key private players

* The combined market share of listed players, such as SBI Life, ICICI Prudential Life, HDFC Life and Max Life, on an individual WRP basis stood at ~66.9% as at Jul’19 (62.2% in FY19). Tata AIA, Bajaj Allianz and Birla Sun Life continued reporting healthy premium growth, getting firmly positioned amongst the 5-7th largest private insurers on individual WRP. Performance of key listed players on individual WRP:

* HDFC Life reported growth of 58% YoY (+61% YoY in FY20 YTD); total unweighted premium grew 25.8% YoY (+21% YoY in Jun’19).

* SBI Life grew 24% YoY (+31% YoY in FY20 YTD); total un-weighted premiums increased 8% YoY (28.1% YoY in Jun’19).

* IPRU reported decline of 1% YoY (flattish trend in FY20 YTD); total un-weighted premium grew 17.7% (+26.1% YoY in Jun’19).

* Max Life reported 48% YoY growth (+33% YoY in FY20 YTD); total un-weighted premium grew 38.3% (+24.6% YoY in Jun’19).

 

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