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Individual WRP of private players grows ~4% YoY in Feb’22 (twoyear CAGR at ~13%)

LIC grows ~8% YoY (two-year CAGR at 9%) in Feb’22; private players’ market share at ~63% over FY22YTD

Private players’ individual weighted received premium (WRP) reported a muted growth of 3.7% YoY in Feb’22 (two-year CAGR at 12.9%; +6.9% in Jan’22), while the industry posted a growth of 5.2% YoY (two-year CAGR at 11.3%; +6.9% in Jan’22). In FY22YTD, private players’ individual WRP grew 23.9% YoY (two-year CAGR at +10.5%), while the industry’s individual WRP rose 16.6% YoY (two-year CAGR at 3.8%)

Among the listed players, HDFC Life posted a growth of 8.7% YoY in Feb’22 (two-year CAGR at 12.3%), while SBILIFE reported a flattish growth (two-year CAGR at 24%). IPRU posted a decline of 6.8% YoY (two-year CAGR of -0.4%), while Max Life reported a much sharper decline of 15.8% YoY (two-year CAGR of +5.5%).

Among the mid-sized players, Bajaj Allianz/Tata AIA reported robust growth of 31%/25% YoY (two-year CAGR at +36.7%/13.8%), respectively, while Birla Sun Life clocked a modest growth of 7% YoY (two-year CAGR of +10.3%). Kotak Life reported a decline of 2% YoY (two-year CAGR of +12.1%)

LIC posted a modest growth of 8.0% YoY in Feb’22 (two-year CAGR at 8.7%; +6.8% in Jan’22) in individual WRP. Its individual WRP rose 5.7% YoY (two-year CAGR of -5.3%) in FY22YTD

We have witnessed a moderation in growth over Jan-Feb’22, after a healthy traction was visible in the previous months. We expect the growth trend to remain modest given pricing pressure on protection business, while 4QFY22 being a seasonally strong quarter will support the overall momentum with continued focus on Non-PAR/ Annuity. ULIP to witness a gradual recovery. We prefer SBILIFE and HDFCLIFE.

Private players’ individual WRP market share expands to ~63% in Feb’22

Private players’ individual WRP market share expanded 175bp MoM to 63.4% in Feb'22. Over FY22YTD, LIC’s market share stood at 36.5%. In FY22YTD, SBI Life (15.5%) remained the largest private insurer in terms of individual WRP, followed by HDFC Life (9.6%) and IPRU (7.3%). On an un-weighted basis, SBI Life was the largest private insurer with market share of 8.9%, followed by HDFC Life (8.3%) and IPRU (5.0%).

Performance of key private players

The combined market share of listed players – SBI Life, IPRU, HDFC Life and Max Life – on an individual WRP basis stood at ~56% in Feb’22. Tata AIA, Bajaj Allianz and Birla Sun Life are getting firmly positioned among the 5th-7th largest private insurers on an individual WRP basis. Among the key listed players based on individual WRP

HDFC Life reported a growth of 8.7% YoY (+17.3% YoY in FY22YTD); total unweighted premium grew 9.5% YoY (+22.5% YoY in FY22YTD)

SBI Life reported a flattish growth of 0.3% YoY (+29.7% YoY in FY22YTD); total un-weighted premium grew 6.9% YoY (+25.2% YoY in FY22YTD

IPRU Life reported a decline of 6.8% YoY (+18.5% YoY in FY22YTD); total unweighted premium declined 22.8% YoY (+18.1% YoY in FY22YTD)

Max Life reported a decline of 15.8% YoY (+11.8% YoY in FY22YTD); total unweighted premium declined 5% YoY (+16.0% YoY in FY22YTD)

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