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Individual WRP for private players grows by ~46% YoY in Apr’22

LIC grows by ~28% YoY, market share for private players grows by ~63% in Apr’22

* The Individual weighted received premium (WRP) for private players grew by 46% YoY in Apr’22 (+12.2% in Mar’22), while the industry posted a growth of 38.7% YoY (+11.9% in Mar’22). This was primarily on account of a low base in Apr’21, which saw muted volumes due to the outbreak of Omicron COVID variant and resulting lockdowns.

* Among listed players, SBILIFE posted a growth of 89.2% YoY in Apr’22. IPRU too reported a growth of 32.2% YoY, after reporting a muted trajectory in the past few months. HDFCLIFE reported a modest 9.6% YoY growth, while MAXLIFE posted a decline of 4.6% YoY – the third decline in the past four months.

& Among mid-sized players, Tata AIA/Bajaj Allianz/Birla Sun Life reported a growth of 86%/81%/51% YoY. Kotak Life reported a growth of 19% YoY.

* LIC reported a growth of 27.8% YoY (+11.5% in Mar’22) in Individual WRP.

* After reporting a moderation in growth over Jan-Feb’22, the industry is witnessing a healthy recovery in Mar-Apr’22. We expect trends to remain healthy, given the strong demand in Annuity/Non-PAR and recovery in the Protection business, while ULIP growth can remain weak due to volatile market conditions. We prefer SBILIFE and HDFCLIFE.

Individual WRP market share for private players expands to ~63% in Apr’22

Individual WRP market share for private players expands by ~300bp MoM to 63.1% in Apr'22. LIC’s market share stood ~37%. SBILIFE (15.6%) remained the largest private insurer in terms of Individual WRP in Apr’22, followed by HDFCLIFE (8.9%) and IPRU (7.3%). On an Unweighted basis, HDFCLIFE was the largest private insurer, with a market share of 8.2%, followed by SBILIFE (6.9%) and IPRU (4.9%).

Performance of key private players

On an Individual WRP basis, the combined market share of listed players – SBILIFE, HDFCLIFE, MAXLIFE, and IPRU – stood ~58% in Apr’22. We also note that both Bajaj Allianz and Tata AIA have overtaken MAXLIFE in terms of Individual WRP market share in Apr’22. Among the key listed players, on the basis of individual WRP –

* HDFCLIFE reported a growth of 9.6% YoY; total Unweighted premium grew 22.5% YoY.

* SBILIFE reported a robust growth of 89.2% YoY; total Unweighted premium grew 33.3% YoY.

* IPRU reported a strong growth of 32.2% YoY; total Unweighted premium grew 37.6% YoY.

* MAXLIFE reported a decline of 4.6% YoY; total Unweighted premium grew 3.3% YoY

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