IGI Logo

Health segment continues to outperform

PSU multi-line players see strong 22% growth, followed by SAHIs at 20% and private multi-line players at 14% YoY

* Private multi-line players reported a GWP of INR112b in Oct’22, up 14% YoY, lower than industry growth. However, PSU players recorded a better-than-industry performance (up 22% YoY).

* Among key players, ICICIGI clocked a strong of 22% YoY growth, whereas STARHEAL posted a muted performance, with 12% YoY growth in GWP. Bajaj Allianz saw a strong performance with 25% YoY growth, whereas New India posted muted 3% YoY growth.

* GWP for the overall industry in Oct’22 stood at INR210b (up 19% YoY). Growth was led by a strong performance across major segments, with a 35%/13% YoY growth in Health/Motor segments. Fire segment too witnessed a growth of 13% YoY.

Health business up 35% YoY, led by the Group segment

The Health business grew 35% YoY, with Retail/Group Health up 12%/51%. Health premiums for government schemes saw a jump of 47% YoY at INR8.3b in Oct’22. The overseas Health segment surged 87% YoY. SAHI reported a 20% YoY growth in Health GWP. Within SAHI, growth in STARHEAL was weaker than other peers at 12% YoY due to a 5% decline in the Group Health segment (other SAHIs saw 36% jump in group health business). Niva Bupa (erstwhile Max Bupa) continued to outperform in the retail health segment as well as overall health business. Within the Retail Health segment, STARHEAL grew at 13%, well below SAHIs, which grew 18% YoY. ILOM reported a growth of 55%/64% YoY in the overall Health/Group Health segment in Oct’22. PSU multi-line players saw a 3% decline in the Retail Health segment, whereas Group business growth remained strong at 59% YoY.

Motor segment reports healthy growth

The Motor business grew 13% YoY, led by 16% growth in Motor OD, whereas Motor TP grew at slower pace of 10%. Private multi-line players saw a strong performance in terms of both Motor OD and Motor TP segments, whereas public players posted a 20% YoY growth in OD but flattish trend in the TP segment. ILOM recorded a healthy 15% YoY growth in the TP business, whereas the OD business witnessed a muted 1% growth. Smaller players such as Go Digit/Acko General demonstrated stellar growth (31% each) in the overall Motor business in Oct’22.

YTD performance of key players

SAHIs/private multi-line players gained 74bp/192bp market share over Apr-Oct’22 at the cost of public players, which lost 218bp.

* ILOM reported a growth of 22% YoY.

* Bajaj Allianz reported a decline of 7% YoY.

* New India reported a growth of 3% YoY.

* STARHEAL reported a growth of 12% YoY.

To Read Complete Report & Disclaimer Click Here

For More Motilal Oswal Securities Ltd Disclaimer http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html SEBI Registration number is INH000000412

Above views are of the author and not of the website kindly read disclaimer