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Individual WRP for private players grows ~16% YoY (two-year CAGR of 4%) in Jun’21

LIC grows ~1% YoY (two-year CAGR of 4.4%), market share of private players grows ~59% over 1QFY22

* Individual weighted received premium (WRP) for private players grew 16.4% YoY in Jun’21 (two-year CAGR of 4%; +5% in May’21), while the industry posted a growth of 10% YoY (two-year CAGR of 4.2%; -9% in May’21). In 1QFY22, Individual WRP for private players grew 26.3% YoY (two-year CAGR of -1.4%). The same for the industry grew 16.4% YoY (two-year CAGR of -2.4%).

* Among listed players, IPRU posted a strong growth of ~43% YoY in Jun’21 (two-year CAGR of -10.1%) v/s a decline of 44% YoY in Jun’20. MAXLIFE reported a growth of ~17% YoY (two-year CAGR of 15.2%), while SBILIFE grew 12.5% YoY (two-year CAGR of 3.4%) v/s a decline of 5% YoY in Jun’20. HDFCLIFE posted flattish growth (two-year CAGR of -1.7%) v/s a decline of 3% YoY in Jun’20.

* Among midsized players, Bajaj Allianz reported a strong growth (41% YoY, two-year CAGR of 26.4%), while players like Tata AIA/Birla Sun Life grew 13%/10% YoY (twoyear CAGR of 15.3%/12.8%). Kotak Life reported a decline of 5% YoY (two-year CAGR of +8.3%) v/s a growth of 24% YoY in Jun’20.

* LIC reported flattish growth (~1.4% YoY, two-year CAGR of 4.4%; -22% in May’21) in Individual WRP. During 1QFY22, LIC’s Individual WRP grew 4.3% YoY (two-year CAGR of -3.8%).

* Although the second COVID wave and lockdown in key states impacted growth in May’21, we have seen a gradual pickup in Jun’21 across most players. With further easing of restrictions and opening up of the economy, we expect premium growth to see a strong traction over FY22, with a continued focus on Non-PAR/Annuity, while ULIP will witness a gradual recovery. Our top ideas are MAXLIFE and IPRU.

Individual WRP market share for private players expands to 61% in Jun’21

Individual WRP market share for private players expands 470bp MoM to 61% in Jun'21. Over 1QFY22, LIC’s market share stood at 42%. In 1QFY22, SBILIFE (11.2%) remained the largest private insurer in terms of individual WRP, followed by HDFCLIFE (10.6%) and IPRU (7.7%). On an unweighted basis, HDFCLIFE was the largest private insurer, with a market share of 7.2%, followed by SBILIFE (6.3%) and IPRU (4.9%).

Performance of key private players

The combined market share of listed players – SBILIFE, HDFCLIFE, MAXLIFE, and IPRU – on an Individual WRP basis stood ~60.5% in Jun’21. Tata AIA, Bajaj Allianz, and Birla Sun Life are firmly positioned in the 5-7th slot among large private insurers on an Individual WRP basis. Among key listed players, on an Individual WRP basis –

* HDFCLIFE reported a decline of -0.3% YoY (+21.8% YoY in 1QFY22); total unweighted premium grew 25.2% YoY (+43.8% YoY in 1QFY22).

* SBILIFE reported a growth of 12.5% YoY (+32.5% YoY in 1QFY22); total unweighted premium grew 17.6% YoY (+9.3% YoY in 1QFY22).

* IPRU reported a growth of 42.9% YoY (+43.7% YoY in 1QFY22); total unweighted premium grew 123.7% YoY (+70.6% YoY in 1QFY22).

* MAXLIFE reported a growth of 17.2% YoY (+33.8% YoY in 1QFY22); total unweighted premium grew 21.3% YoY (+37.8% YoY in 1QFY22).

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