Insurance Sector Update - Industry premium up ~5.5% YoY in Nov’21 By Motilal Oswal
Industry premium up ~5.5% YoY in Nov’21 as the strong growth in Health/Marine/Fire offset weakness in other segments
SAHIs outperformance continues with 29.8% growth; PSU players outpace private players with 5% growth
* Private players reported a GWP of INR81.4b, implying a growth of 3.7% YoY in Nov’21 and 11.4% in FY22 YTD, a tad weaker than its industry performance.
* Among key players, New India/Star Health reported strong GWP growth (+20%/+10% YoY), while Bajaj Allianz/ILOM (combined with Bharti AXA) posted a decline of 4%/8%.
* Overall industry GWP in Nov’21 stood at INR157.4b (up 5.5% YoY). Growth was driven by a strong performance (+24.7%/+11.1%/+25.4%) from the Health/Fire/Marine segment, whereas the Motor segment saw muted growth (+3%). The Crop segment saw a 3% decline.
* In FY22 YTD, New India has seen the highest market share gains of 110bp at 15.4%. Among private players, ILOM’s market share stood at 8.3% (-76bp YoY).
Health business up 25% YoY in Nov’21 on continued gains in the Group Health business
The Health business grew 24.7% YoY, with Retail/Group Health up 14%/21%. Premium from government schemes stood at INR2.4b v/s nil in Nov’20. The Overseas Health segment saw robust growth (+168% YoY). The share of the Health segment in overall industry GWP grew 429bp to 33.5% on a FY22 YTD basis. SAHI reported GWP growth of 29.8% YoY. Within SAHI, growth in Star Health remained sub-par v/s other peers at 20% due to capital constraints. ILOM reported a market share of 2.9% in the Retail Health segment (flat YoY) and 7.2% in in the Group Health (157bp YoY) in Nov’21. PSU players in the Retail Health segment saw a 2% YoY decline, whereas growth in the Group segment remained healthy at 12%.
Motor segment sees a muted growth of 3%
The Motor business grew 3% YoY, driven by a sharp jump of 5% in Motor TP. Motor OD premiums were flat on a YoY basis. Growth in the Motor segment remains subdued at 3.9% in FY22 YTD. Its share in the overall industry fell to 30.3% (-229bp). The slowdown is attributable to weak vehicle sales, led by the semiconductor shortage issue. Within the Motor segment, private players gained ~380bp market share on a YTD basis. ILOM’s market share fell 107bp YoY on the back of a relatively higher exposure to the Passenger Car segment v/s the industry. Smaller players like Go Digit, Reliance General, and SBI General have seen a sharp improvement in market share in FY22 YTD.
Performance of key players
Overall, SAHIs continue to gain market share (+162bp) in FY22 YTD at the cost of public players, which have lost 123bp. The market share of private players remains stable at 49.5%. New India continues to lead in terms of market share at 15.4%, followed by ILOM and United India at 8.3% and 7%, respectively.
* ILOM reported a decline of 4.1% YoY (+2.4% YoY in FY22 YTD).
* Bajaj Allianz reported a decline of 8% YoY (+12.6% YoY in FY22 YTD).
* New India reported a growth of 10% YoY (+15.4% YoY in FY22 YTD).
* Star Heath reported a growth of 8.5% YoY (+28.4% YoY in FY22 YTD).
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