Published on 26/10/2020 11:01:31 AM | Source: ICICI Securities Ltd

Insurance Sector Update - Premium growth recovery remains on track By ICICI Securities

Posted in Broking Firm Views - Sector Report| #Insurance Sector #Sector Report #ICICI Securities

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Premium growth recovery remains on track

* Overall FY21TD/Jul’20, GDPI grew 1.6/18% YoY. Trend reversal was seen in Jul’20TD growth, as Apr’21TD, May’20TD and Jun’20TD witnessed a decline of 11%,10% and 4% respectively.

* ICICI Lombard (ICICIGI) FY21TD GDPI growth continues to remain negative (3% YoY). Jul’20 GDPI growth came in at 5% YoY vs 20% YoY of Jun’20

* Bajaj Allianz General Insurance (BAGIC) saw trend reversal by registering growth of 113% YoY in Jul’20 against decline of 21/22/16% YoY in Apr/May/Jun’20. FY21TD growth stood at 14% YoY.

* Standalone health insurers registered a growth a 23% and 41% YoY in FY21TD and Jul’20 respectively. Star health reported a robust growth of 42% in FY21TD

* PSU insurers New India assurance and United India assurance posted a FY21TD growth of 7%, while national insurance and Oriental insurance reported a decline of 15% and 12% respectively. Specialised insurers (AIC and ECGC) reported a growth of 52% in FY21TD.

* Market share movement – New India and United India gained 90bps and 50bps YoY respectively in FY21TD. BAGIC gained 80bps while ICICI Lombard lost 40bps and in FY21TD. Star health reported a robust market share gains 120bps in FY21TD. (Market share details in Table 3 below)


* ICICIGI Q1FY21 sector growth trend

- Fire remains the star segment driven by price hikes (42% growth in GDPI in Q1FY21 for ICICIGI).

- Health remains muted for ICICIGI with 5% decline in Q1FY21 for ICICIGI. The recovery is slow in health for ICICIGI driven by weak distribution in bank network. Star Health have however shown 14%, 31%, 51% and 63% growth in Apr;20, May'20, Jun'20 and Jul'20.

- Motor TP/OD has shown gradual monthly recovery for ICICIGI. Motor OD/TP segment posted a positive growth of 6/12% in Jun'20 after declining 51/42.5% and 33/16% in the month of Apr'20 and May'20 respectively.


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