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APE growth remains strong; group segment continues to drive sum assured growth

Total private life insurer APE has grown by 28% / 25% YoY in FY22TD / Jul’21. Strong growth in total APE was led by SBI Life (36% YoY) followed by BALIC (30% YoY), IPRU Life* (29%) HDFC Life (16% YoY) and Max Life (15% YoY) in Jul’21. Individual private Insurer APE has grown 27.8% / 30% YoY in FY22TD / Jul’21. Growth in Individual APE was led by SBI Life (52% YoY) followed by BALIC (39% YoY), IPRU Life (25.3% YoY), HDFC Life (18.4% YoY) and Max (15.6% YoY).

On high base, Max Life has witnessed month on month decline in both individual and total APE in July’22 of 5.4%/5.2%. Total private insurer sum assured grew 12% YoY in July’21 led by 26% growth ingroup sum assured and 9% decline in Individual sum assured. FY22TD Total / Individual / Group sum assured has grown 28% / (-)14% / 86%. Number of policy growth has significantly been higher for SBI Life at 30% in FY22TD compared to overall private life number of (-)0.6%. 

Analysis of total sum assured and individual sum assured

Total industry sum assured grew 15% YoY. Private insurers witnessed 12% YoY growth led by 26% growth in group segment while Individual sum assured witnessed a decline of 9% YoY in Jul’21.

In terms of total sum assured, PNB met life report strong market share gains (driven by strong growth in group sum assured segment), while SBI Life and Max Life reported sharp decline of 520bps and 400bps on YoY basis. BALIC, IPRU and HDFC life reported market share gains in the range of 180-210bps.

In terms of Individual sum assured, Max life / BALIC / Kotak reported a decline of 480bps / 100bps / 101bps on YoY basis in Jul’21. HDFC Life / IPRU Life reported stable market share while SBI life reported 140bps gain in Jul’21

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