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y considering the backdrop of (1) increasing combined ratio for all players in FY23 and (2) room for increasing opex ratios basis the EOM guideline where we see 10 out of top 18 multi-line players in the industry operating under the 30% benchmark and 2 out of 4 SAHIs operating below the 35% mark. There could be an alternate view that with many players above the 30% water mark in terms of EOM, there could be a pricing discipline. Trends that can emerge include: (1) Competitive pressure can continue as many players may strive to gain market share, especially if they are unlisted, (2) more players settle for lower RoEs (15% range), (3) players try to retain more on the book with rising reinsurance rates. Additionally, there is continued market share loss for PSU pack (215bps YoY to 36% in Q1FY24).

* Growth trends remain strong: Non-life insurance companies reported strong GDPI growth of 17.9% YoY in Q1FY24. Jun’23 saw a YoY increase of 15% in GDPI. ICICI Lombard (ICICIGI) reported healthy growth of 18.9% in Q1FY24 while Star Health reported 19.5% growth during the quarter. Market share in Q1FY24 for ICICIGI and Star health remained stable at 9.9%, 4.6%, respectively.

* Fire GDPI witnessed 6/8% YoY growth in FY24-TD/Jun’23: ICICIGI’s market shared in fire segment increased from 13.4% in Q1FY23 to 13.9% in Q1FY24. Top market gainers in fire segment in Q1FY24 were Go-Digit, Tata AIG, Bajaj Allianz as their GDPI growth stood at 41%, 21%, 16%, YoY, while top losers include Oriental, United, National as their GDPI decline by 9%, 8%, 6%, YoY, respectively.

* Motor GDPI witnessed 21/17% YoY growth in FY24-TD/Jun’23: Q1FY24 motor OD/TP growth stood at 22/20% YoY. ICICIGI’s market share decreased in motor segment from 11.3% in Q1FY23 to 9.8% in Q1FY24. Top market gainers in motor segment in Q1FY24 were Go-Digit, IFFCO-Tokio, TATA AIG as their GDPI growth stood at 57%, 47%, 45%, YoY, while top losers include SBI general, Magma, Universal as their GDPI declined by 25%, 13%, 2%, YoY, respectively.

* Health GDPI witnessed 21/16.7% YoY growth in FY24-TD/Jun’23: Q1FY24 retail/group GDPI growth stood at 18/22% YoY in Q1FY24. Star Health, a leader in retail health segment, strengthened its market share from 31.7% in Q1FY23 to 31.9% in Q1FY24 while ICICIGI had a market share of 3.1% in Q1FY24 (marginally up from 2.95% in Q1FY23). Top gainers in retail market share include Reliance General, Care Insurance, Manipal Cigma with 52%, 41%, 36%, YoY, Oriental, New India growth stood at 8/6% YoY while National’s GDPI growth remained flat. Within group health, top gainers include Go Digit, Max, Future Generali while PSU pack was the top loser.

* Crop GDPI witnessed 37/20% YoY growth in FY24-TD/Jun’23: Crop segment is dominated by 4 players who have 78% market share (Reliance General: 34%; AIC: 22%; Universal: 12%; IFFCO-Tokio: 10.4%). However, top gainers include Future Generali, AIC, HDFC Ergo whose growth stand at 450%, 249%, 196%, YoY, respectively, in Q1FY24.

* Key trends expected in general insurance are likely to be: (1) Sustained growth in health insurance (especially retail) driven by volume as well as value growth (price hikes may push growth in FY24E), (2) volume growth (retail) in motor (PVs up 1.8% YoY, 2- Ws up 2.9% YoY and CVs up 7.6% YoY in FY24TD ending Jun’23) and (3) impact on profitability of GI players due to sharp hike in reinsurance rates. ? PSU pack continues to lose market share. FY24-TD PSU insurers’ GDPI grew 11% YoY. PSU insurers’ GDPI market share declined to 36% in Q1FY24 from 39% during the same period last year.

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