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Industry premium grows by ~24% YoY in Aug’21, led by strong performance across segments (two-year CAGR of 17%)

The General Insurance industry grew by 24% YoY in Aug’21, with private players, public players, and SAHI growing by 18.4%, 15.8%, and 26.1%, respectively.

* Private players reported a GWP growth of 18.4% YoY in Aug’21 (two-year CAGR of 13.6%), while the industry posted a growth of 24.1% YoY (two-year CAGR of 17.1%). In FY22 YTD, private players’ GWP grew by 14.1% YoY (two-year CAGR of 7.2%). The same for the industry grew by 16.9% YoY (two-year CAGR of 10%).

* Overall GWP growth was driven by strong performance across all segments, with Marine/Motor OD/Health/Crop growing by 38.6%/11.2%/24.5%/40.4%.

* On a FY22 YTD basis, Star Health saw the highest market gain of 54bp at 4.9%. Among private players, ILOM’s market share stood at 6.9% (-40bp YoY).

* Among key players, Bajaj Allianz, New India, and Star Health reported strong GWP growth of 11.4%/30.6%/16% YoY (two-year CAGR of 0.6%/11.4%/33.2%), whereas ILOM reported muted growth of 4.3% YoY (two-year CAGR of 8%). Within key unlisted players, SBI General reported astronomical growth (96.3% YoY, two-year CAGR of 65.8%).

Health segment grew by 24.5% YoY in Aug’21 steered by robust performance in the Group Health business

The Health business grew by 24.5% YoY (two-year CAGR of 24.6%), with Retail/Group Health growing by 14%/37% (two-year CAGR of 26.2%/21%). Government schemes/overseas health business too saw robust growth of 22%/82% YoY (on a small base).The share of Health segment in the overall industry GWP grew by 395bp to 34.9% on a FY22 YTD basis. SAHI reported a GWP growth of 26.1% YoY (two-year CAGR of 34.9%). Within SAHI, growth of Star Health remained subdued at a mere 16% against a growth of 53%/51%/33%/22% during Apr’21/May’21/Jun’21/Jul’21. We believe this slowdown in growth is a conscious step on the back of limited capital. The proceeds from the upcoming IPO of Star Health will provide the required capital cushion, aiding the company back to the growth trajectory. After two consecutive month of market share loss in the Health segment, ILOM saw a market share gain of 112bp in Aug’21.

Performance of key players

On an overall basis, private/public players lost 116bp/151bp, whereas SAHI stands to gain 142bp of market share on a FY22 YTD basis. New India leads in terms of market share at 16%, followed by Bajaj Allianz, United India, and ILOM at 7.5%, 7.3%, and 6.9%, respectively.

* ILOM reported a growth of 4.3% YoY (10.5% YoY in FY22 YTD).

* Bajaj Allianz reported a growth of 11.4% YoY (18.2% YoY in FY22 YTD).

* New India reported a growth of 30.6% YoY (23% YoY in FY22 YTD).

* Star Heath reported a growth of 16% YoY (31.4% YoY in FY22 YTD).

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