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Health remains the singular contributor to growth

Due to weakness in motor insurance growth and high base effect in fire, health has become the sole growth driver for non-life insurance GDPI in FY22-TD. As such, standalone health insurers are likely to remain growth leaders in the space. Health, motor and fire GDP grew by 30%,3% and 2% YoY respectively in Q1FY22.

* Health GDPI: Health segment GDPI in Jun’21 came in at Rs57bn, up 32% YoY. ICICGI reported growth of 15%, BAGIC 22% and SAHI 37% YoY. ICICIGI market share stood at 3.8% in Jun’21 vs 6.1% in Apr’21, 5.4% in May’21 and 4.6% in FY21.

* Motor GDPI: Overall motor GDPI declined 4% YoY. Segmental GDPI stood at Rs51bn vs the average monthly run-rate of Rs56bn seen in FY21. ICICIGI reported a decline of 10% while BAGIC reported growth of 5%, YoY. ICICIGI’s market share was 9% in Jun’21 vs 10.2% in Apr’21, 9.3% in May’21 and 10.4% in FY21.

* Fire GDPI: Industry fire GDPI grew 4% YoY. ICICIGI reported 13% growth in segmental GDPI while BAGIC reported strong surge of 46% YoY on low base of Jun’20. ICICIGI’s market share stood at 10.2% in Jun’21 vs 15.5% in Apr’21, 8.7% in May’21 and 10.8% in FY21.

* Bharti AXA reported Q1FY22 GDPI of Rs4.6bn, down 11% YoY. Its fire / health GDPI was down 34%/26% YoY respectively. Motor segment grew by 15% with market share of 1% in Q1FY22 vs 1.4% in Q1FY21 and 1.6% in FY21. Motor GDPI market share stood at 1.9% in Q1FY22 vs 1.7% in Q1FY21. Health GDPI market share was 0.5% in Q1FY22, 0.8% in Q1FY21 and 0.7% in FY21.

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