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Published on 15/01/2020 10:27:30 AM | Source: Motilal Oswal Services Ltd

Insurance Sector - Private players` individual WRP up ~17% YoY in Dec`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 up ~17% YoY in Dec’19

LIC reports ~13% YoY growth in individual WRP

 Private players’ individual weighted received premium (WRP) grew 17.2% in Dec’19 (v/s +26.9% YoY in Nov’19), higher than industry growth of 15.6% YoY (v/s 60.0% YoY in Nov’19). The strong growth was on the back of a higher base as private players/industry reported growth of 14%/15% YoY in individual WRP during Dec’18 (base month). For FY20 YTD, private players’ individual WRP grew 16.1% YoY while industry growth came in at 16.6% YoY. Amongst listed players, SBI Life grew 17% YoY while HDFC Life/Max Life reported 46%/23% YoY growth on a benign base. On the other hand, IPRU Life reported just 8% YoY growth on a benign base. Growth amongst mid-sized players like Tata AIA/Bajaj Allianz moderated to 23%/4% on a higher base, while Birla Sun Life reported 14% YoY decline. LIC saw growth of 13% YoY in Dec’19 (v/s 103.9% YoY in Nov’19) in individual WRP. For FY20 YTD, LIC’s individual WRP grew 17.2% YoY.

Private players’ individual WRP market share expands to ~65% for Dec’19 (57% for FY20 YTD)

Private players’ individual WRP market share expanded to ~65% in Dec’19. While LIC reported growth of 15.6% in Dec’19 (v/s 103.9% in Nov’19), private players reported growth of 17.2% YoY (FY20 YTD – +16.1%). For FY20 YTD, SBI Life (14.0%) remained the largest private insurer in terms of individual WRP, followed by IPRU Life (9.5%) and HDFC Life (8.2%). On an un-weighted basis, SBI Life was the largest private insurer with market share of 6.6% followed by HDFC Life at 6.3% and IPRU Life at 4.2%.

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 ~64.2% in Dec’19 (v/s 62.2% in FY19). Tata AIA, Bajaj Allianz and Birla Sun Life are firmly positioning themselves among the 5-7 largest private insurers (on individual WRP basis). Amongst key listed players, on individual WRP basis:

* HDFC Life reported 46% YoY growth on a benign base (+31% YoY in FY20 YTD); total un-weighted premium grew ~6% YoY (+23.5% YoY in FY20 YTD).

* SBI Life grew 17% YoY (+19% YoY in FY20 YTD); total un-weighted premium increased 19% YoY (35% YoY in FY20 YTD).

* IPRU Life reported growth of just 8% YoY on a benign base (+3% YoY FY20 YTD); total un-weighted premium grew 16.1% YoY (+19.7% YoY in FY20 YTD).

* Max Life reported 23% YoY growth on a benign base (+20% YoY in FY20 YTD); total un-weighted premium grew 22% YoY (+19.2% YoY in FY20 YTD).

 

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