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Individual WRP for private players grows 3% YoY in October 22

* The Individual weighted received premium (WRP) for private players grew 3% YoY in Oct’22 (a three-year CAGR of 13.3%, up 6.5% in Sep’22). The same for the industry grew 3.1% YoY in Oct’22 (a three-year CAGR of 8.7%, up 3.6% in Sep’22). Over AprOct’22, Individual WRP for private players grew 17.9% YoY (a three-year CAGR of 12.3%).

* All the listed players reported weak trends with SBILIFE reporting a muted growth of 6.3% in Oct’22 (a three-year CAGR of 17.3%), while MAXLIFE posted a muted decline of 0.2% (a three-year CAGR of 14.2%). HDFCLIFE/IPRU posted a higher decline of 13.1%/25.6% YoY (a three-year CAGR of 15.3%/-10.5%), respectively.

* Among mid-sized players, Tata AIA/Bajaj Allianz/Birla Sun Life reported a strong 67%/28%/15% YoY growth (a three-year CAGR of 33.0%/28.5%/13.4%), respectively. Kotak Life reported a decline of 2.1% YoY (a three-year CAGR of 11.1%).

* LIC grew 3.5% YoY in Individual WRP (a three-year CAGR of 2.5%, a decline of 1.7% in Sep’22). Over Apr-Oct’22, Individual WRP for LIC grew 13.5% YoY (a three-year CAGR of 5.1%).

* After reporting a healthy growth initially in FY23, the industry is witnessing moderation over the past few months. We expect growth to pick up gradually, given the demand for Annuity and Non-PAR policies, and a recovery in the Protection and ULIP business, given healthy performance of capital markets. SBI Life is our preferred idea.

On an Individual WRP basis, the market share for private players moderates to ~63% in October 22

In terms of Individual WRP, the market share for private players moderated by 400bp MoM to 62.8% in Oct'22. LIC’s market share improved to 37%. SBILIFE (15.2%) remained the largest private insurer in terms of Individual WRP in AprOct’22, followed by HDFCLIFE (9.3%) and IPRU (6.4%). On an Unweighted basis too, SBILIFE was the largest private insurer, with a market share of 7.3%, followed by HDFCLIFE (6.3%) and IPRU (4.1%).

Performance of key private players

On an Individual WRP basis, the combined market share of listed players – SBILIFE, HDFCLIFE, MAXLIFE, and IPRU – stood at 57% of all private players in Apr-Oct’22. Among large private insurers, on an Individual WRP basis, Tata AIA has surpassed MAXLIFE to emerge as the fourth largest, while Bajaj Allianz too surpassed MAXLIFE in Oct’22. Among key listed players on the basis of Individual WRP –

* HDFCLIFE declined 13.1% YoY (up 6.8% in Apr-Oct’22) and its total unweighted premium grew 4.8% YoY (up 5.6% in Apr-Oct’22).

* SBILIFE grew 6.3% YoY (up 18.6% in Apr-Oct’22) and its total unweighted premium grew 16.5% YoY (up 25.7% in Apr-Oct’22).

* IPRU declined 25.6% YoY (down 3.6% in Apr-Oct’22) and its total unweighted premium grew 4.7% YoY (up 12.5% in Apr-Oct’22).

* MAXLIFE declined 0.2% YoY (up 0.7% in Apr-Oct’22) and its total unweighted premium declined 1.0% YoY (up 7.2% in Apr-Oct’22).

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