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SAHI outperformance continues

Gross domestic premium income (GDPI) for non-life insurers grew 7% YoY in Jun’21 – of which, private players’ GDPI grew 7.4% YoY and that for PSU insurers was up 6.4% YoY. Growth was led by strong rise (47% YoY) in GDPI for SAHI while that for private insurers (ex-SAHI) grew 1% YoY, in Jun’21. ICICIGI’s market share declined to 7% in Jun’21 compared to 7.6% in May’21. Motor registrations improved MoM in Jun’21. Covid claims as of 22nd Jun’21 rose to 1.9mn vs 1.5mn as of 14th May’21 – of which, 15.4mn claims were settled as of 22nd Jun’21. Total claims paid in Q1FY21 stood at Rs71bn vs Rs79bn in FY21.

In Q1FY22, PSU non-life insurers’ GDPI grew 9.1% YoY, private non-life insurers’ by 17.6% YoY while ICICIGI’s GDPI grew by 13% YoY and SAHI’s by 55% YoY. Private insurers (ex- SAHI) have grown 12.1% YoY in Jun’21. There is a case for growth in market share of private players. Q1FY22 was adversely impacted due to covid second wave, hence performance should improve ahead. However, higher covid claims and absence of motor TP hike pose an overhang on near-term profitability.

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