Published on 16/05/2019 11:28:49 AM | Source: Motilal Oswal Securities Ltd

Insurance Sector - Private players` individual WRP grows 18.4% YoY in Apr-19 By Motilal Oswal

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

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Private players’ individual WRP grows 18.4% YoY in Apr-19

Individual WRP market share for private players at 54.5%

Private players’ individual weighted retail premium (WRP) growth remained strong at 18.4% YoY in Apr’19 (v/s +18.5% YoY in Mar’19), while industry growth came in at 18.5% YoY (v/s +9.7% YoY in Mar’19). Among private players, Tata AIA (+125% YoY) and Birla Sun Life (+46% YoY) exhibited robust trends. Bajaj Allianz, on the other hand, witnessed a decline of 23% YoY. Among listed players, SBI Life/HDFC Life/Max Life reported individual WRP growth of 51%/31%/ 28%, while IPRU Life reported marginal growth of 2% YoY. LIC, too, reported strong 18.6% YoY growth in individual WRP (flattish in Mar’19), taking industry growth to 18.5% YoY in Apr’19 (9.7% for Mar’19).


Private players’ individual WRP market share at 54.5% for Apr’19

Private players’ individual WRP market share fell 343bp MoM to ~55% in Apr’19 due to a sharp pick-up in growth at LIC. In Apr’19, ICICI Pru Life, SBI Life and HDFC Life gained the maximum market share, while Max Life/Kotak Life’s market share shrank 309bp/197bp. In Apr’19, SBI Life remained the largest private insurer in terms of individual WRP, followed by IPRU Life. On an un-weighted basis, HDFC Life remains the largest insurer with a market share of 14.2%, followed by SBI Life (9.1%).


Performance of key private players

The combined market share of the listed players – SBI Life, ICICI Prudential Life, HDFC Life and Max Life – on an individual WRP basis stood at ~64.4% as on Apr’19 (62.2% in FY19). Tata AIA and Birla Sun Life continued reporting healthy premium growth, getting firmly positioned to be among the 5-7th largest private insurers. Among key listed players, on an individual WRP basis (in Apr’19)…

* HDFC Life reported growth of 31% YoY (+1% YoY in Mar’19); total un-weighted premium grew 86.0% (+25% YoY in Mar’19).

* SBI Life grew 51% YoY (+28% YoY in Mar’19); total un-weighted premium increased 122% YoY.

* PRU reported 2% YoY growth (+14% YoY in Mar’19) – 8% average growth in the past three months.

* Max Life reported 28% YoY growth (15% YoY growth in Mar’19) – highest in the past three months.


Mutual fund AUM grows 4.2% MoM to INR24.8t

Mutual fund AUM grew 4.2% MoM to INR23.8t as on Apr’19. According to the new disclosure, income and debt schemes together comprised ~50% of total AUM, while equity-oriented schemes formed ~30%. Hybrid scheme comprised 11.5% of total AUM, while arbitrage funds formed 2%.


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