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Individual WRP for private players grows ~29% YoY (two-year CAGR of ~15%) in Dec’21

LIC grows ~6% YoY (two-year CAGR of 5%), market share for private players grows ~64% over FY22 YTD

* Private players’ Individual weighted received premium (WRP) grew a strong 29.4% YoY in Dec’21 (two-year CAGR of 15.5%; +28.6% in Nov’21), while the industry posted a growth of 21.2% (two-year CAGR of 11.9%; +26% in Nov’21). In FY22 YTD, private players’ Individual WRP grew 30% YoY (two-year CAGR of +10.6%). The same for the industry grew 19.7% YoY (two-year CAGR of +5%).

* Among listed players, MAXLIFE/HDFCLIFE posted a robust growth of ~40%/32% YoY in Dec’21 (two-year CAGR of +28.7%/+16.9%). SBILIFE posted a strong 19% YoY growth (two-year CAGR of 12.8%). IPRULIFE reported a muted growth of 10.8% YoY (two-year CAGR decline of 8.2%) v/s a decline of 24% in Dec’20.

* Among mid-sized players, Bajaj Allianz/Tata AIA reported a robust growth of 71%/59% YoY (two-year CAGR of +55.6%/+31.5%). Birla Sun Life reported a healthy 18% YoY growth (two-year CAGR of +18.8%). Kotak Life posted a strong 22% YoY growth (twoyear CAGR of +3.2%).

* LIC reported a modest 6.2% YoY growth (two-year CAGR of 5.1%; +21.7% in Nov’21) in Individual WRP. In FY22 YTD, Individual WRP grew 5.2% YoY (two-year CAGR of -3.1%).

* We have seen a healthy pickup in growth over the past few months with Dec’21 continuing to witness healthy trends across most segments. We expect premium growth to see strong traction over FY22E, with a continued focus on Non-PAR/Annuity, while ULIP will witness a gradual recovery. We prefer SBILIFE and IPRULIFE.

Individual WRP market share for private players expands to ~69% in Dec’21

Individual WRP market share for private players expands by 500bp MoM to ~69% in Dec'21. Over FY22 YTD, LIC’s market share stood at 36.3%. In FY22 YTD, SBILIFE (15.8%) remained the largest private insurer in terms of Individual WRP, followed by HDFCLIFE (9.7%) and IPRULIFE (7.4%). On an unweighted basis, SBILIFE was the largest private insurer with a market share of 9.2%, followed by HDFCLIFE (8.4%) and IPRULIFE (5%).

Performance of key private players

The combined market share of listed players – SBILIFE, IPRULIFE, HDFCLIFE, and MAXLIFE – on an Individual WRP basis stood ~61% in Dec’21. Among the largest private insurers on an Individual WRP basis, Tata AIA, Bajaj Allianz, and Birla Sun Life are firmly positioned in the 5-7th slot. Among key listed players on the basis of individual WRP –

* HDFCLIFE reported a robust 31.5% YoY growth (+20.7% in FY22 YTD); total unweighted premium grew 55.7% (+26.1% in FY22 YTD).

* SBILIFE reported a healthy 19% YoY growth (+37.9% in FY22 YTD); total unweighted premium grew 26.7% (+30.2% in FY22 YTD).

* IPRULIFE reported a modest 10.8% YoY growth (+27.8% in FY22 YTD); total unweighted premium declined by 6% (+29.7% in FY22 YTD).

* MAXLIFE reported a robust 40% YoY growth (+22.5% in FY22 YTD); total unweighted premium grew 31.9% (+24.6% in FY22 YTD).

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