Insurance tracker Apr’21 – Lockdown impact playing out
The insurance industry reported weak growth in Apr’21 on a month-on-month basis, whereas yoy growth was robust backed by the lower base effect of last year. We consider Apr’21 performance relatively weak as the numbers are lower compared to Apr’19 data. This implies that lockdowns implemented in Apr’21 in major metro cities amid the second wave of Covid-19 have impacted sales of all insurance companies. The trend is expected to continue in May’21 due to further extension of lockdowns; however, the base effect advantage of last year will still remain.
Retail NBP for the industry witnessed ~103% yoy growth, while total NBP recorded ~45% yoy growth. Retail APE for the industry grew ~83.2% yoy, while total APE grew ~43.6% yoy.
* For private players, the trend in retail sales remained better compared to group policy sales as Retail APE for private players grew ~90% yoy (vs. 89% growth in Mar’21). Group APE surged ~47% yoy (vs. ~95% growth in Mar’21).
* On the basis of total APE, the share of private players increased to ~60% (~56% in Mar’21). The share of retail APE stood at ~60% similar to Mar’21, while the share of group APE stood at ~51% vs. ~41% in Mar’21.
* HDFCL: HDFCL reported ~95% yoy growth in APE in Apr’21 to Rs4.6bn, backed by healthy retail APE, which rose ~96% yoy to Rs3.7bn. NBP at Rs11.9bn grew ~78% yoy, aided by ~99% yoy growth in retail NBP. Policy sales rose ~27% yoy. The retail APE ticket size rose ~56% yoy in Apr’21, indicating a continued revival in profitable segments along with the lower base effect of last year.
* IPRU: IPRU reported ~79% yoy growth in APE to Rs3.3bn in Apr’21 due to a low base. Retail APE grew ~65% yoy to Rs2.6bn and group APE rose ~155% yoy to Rs0.7bn. NBP at Rs6.4bn grew ~151% yoy, aided by ~302% yoy growth in group NBP. Policy sales grew ~17% yoy, while the retail APE ticket size grew ~41% yoy as ULIPs picked up. Relatively superior rise in NBP over APE indicates elevated sales of single premium products.
* MAXL: MAXL reported APE growth of ~102% yoy to Rs2.4bn. Retail APE grew ~121% yoy to Rs2.3bn. NBP grew ~102% yoy to Rs3.5bn. Policy sales increased by ~20% yoy, while the retail APE ticket size increased by ~89% yoy.
* SBIL: SBIL reported ~1% yoy growth in NBP to Rs9.3bn, mainly backed by retail NBP, which grew ~269% yoy to Rs5bn. APE increased by ~116% yoy to Rs4.5bn. Policy sales rose ~265% yoy, while the retail APE ticket size grew ~3% yoy.
* LIC: LIC has reported ~11% yoy growth in APE. Retail APE grew ~74% yoy to Rs13.3bn. NBP grew ~36% yoy to Rs48.6bn. Policy sales increased by 2.7x yoy, while the retail APE ticket size declined 55% yoy.
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