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In Sep’21, the industry APE recorded 29% YoY with private APE up 36% and LIC up 19%. Category wise, growth was driven by both individual APE, up 30% YoY in Sep’21 and group APE, up 23% YoY. On a 2-yr CAGR basis, growth momentum continued with industry’s total APE for Sep’21 up 18% driven by recovery in LIC’s APE which was up 15% while private insurers grew 20%. Among major players, robust performance during Sep’21 was seen for BALIC (+82% YoY), Birla SL (+59%) and SBI Life (+49%). On a 2-yr CAGR basis, Birla SL (+44%), BALIC (+39%) and HDFC Life (35%) reported a robust performance in Sep’21. On unweighted basis, industry NBP was up 22% YoY in Sep’21 driven by 42% growth for private insurers. On a 2-yr CAGR basis, Sep’21 unweighted NBP was up 24% for the industry driven by both private insurers (31%) and LIC (20%).

For 2QFY22, the industry has recorded APE growth of 19% YoY driven by private insurers (+33%). Player wise, BALIC (53% YoY) and SBI Life (48%) outperformed peers. On unweighted basis, industry NBP increased 5% YoY in 2QFY22 driven by 24% growth for private insurers. Key monitorables going forward are impact of reinsurance led price hikes in protection and persistency/ mortality movement.

HIGHLIGHTS

* Industry APE up 29% YoY in Sep’21: In Sep’21, the industry APE recorded 29% YoY with private APE up 36% and LIC up 19%. Category wise, growth was driven by both individual APE, up 30% YoY in Sep’21 and group APE, up 23% YoY. Among major players, robust performance during Sep’21 was seen for BALIC (+82% YoY), Birla SL (+59%) and SBI Life (+49%). Strong performance was reported by HDFC Life (26%) and IPRU Life (35%) as well while Max Life slowed down with APE growth at 8%. On unweighted basis, industry NBP made a sharp recovery with 22% YoY growth in Sep’21 driven by LIC (+12%) and private insurers (42%).

* Versus pre-COVID19, Sep’21 saw a continuation of growth momentum: On a 2-yr CAGR basis, Sep’21 saw industry APE increase 18% driven by a recovery for LIC – APE up 15% on 2-yr CAGR basis vs -4% on average over Apr-Aug’21. Private insurers continued a strong performance with APE up 20% in Sep’21. Among major insurers, Birla SL (+44%), BALIC (+39%) and HDFC Life (35%) reported a robust performance in Sep’21. IPRU Life posted a strong recovery with APE up 6% on 2-yr CAGR basis in Sep’21. On unweighted basis, NBP was up 24% on 2-yr CAGR basis driven by both LIC (20%) and private insurers (31%).

* Sep’21 closes a strong quarter 2QFY22: For 2QFY22, the industry has recorded APE growth of 19% YoY driven by private insurers (+33%). Player wise, BALIC (53% YoY) and SBI Life (48%) outperformed peers. Strong performance was reported by IPRU Life (33%) and Birla SL (32%) as well. On unweighted basis, industry NBP increased 5% YoY in 2QFY22 driven by 24% growth for private insurers. For the 1HFY22, industry APE was up 17% YoY driven by private insurers (31%). Player wise, BALIC (53%), SBI Life (41%) and IPRU Life (38%) outperformed peers in 1HFY22.

* Private players gained c.6pps YoY in APE market share to 55% as of 1HFY22: For Sep’21, private insurers gained 328bps YoY in APE market share with SBI Life gaining 198bps YoY. For 1HFY22, private insurers gained 6pps YoY in APE market share to 54.6% with SBI Life and IPRU Life emerging the biggest gainers with APE share up 223bps and 102bps YoY respectively.

* In Sep’21, industry’s individual premium per policy increased 12% YoY: Industry’s individual NBP per policy increased 12% YoY in Sep’21 driven by 27% improvement in individual ticket sizes for private players while LIC ATS declined 3%. Individual ticket sizes for erstwhile leaders improved YoY - IPRU Life individual ATS is up 29% YoY to INR151,313 as linked sales recover, HDFC Life individual ATS is up 28% YoY to INR135,942.

* Group premium share was steady YoY at 63% in Sep’21: Overall, group premium contribution was up 66bps YoY to 63% of total new business premium in Sep’21. Compared to pre-COVID19 Sep’19 levels, the group premium share in total premium share was steady as the mix normalises as individual business continues picking up.

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