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Private players’ Individual WRP grew by ~39% YoY (two-year CAGR of ~14%) in Aug’21

LIC declines by ~5% YoY (two-year CAGR of -1.5%), private players’ market share ~61% in FY22 YTD

* Private players’ Individual Weighted Received Premium (WRP) grew 39.1% YoY in Aug’21 (two-year CAGR of 14.5%; +21% in Jul’21), while the industry posted a growth of 18.9% (two-year CAGR of 7.8%; +15% in Jul’21). In FY22 YTD, private players’ Individual WRP grew 30.8% YoY (two-year CAGR of +5.3%). The same for the industry grew 16.7% YoY (two-year CAGR of +2.4%).

* Among the listed players, SBILIFE posted a strong growth of ~67% YoY in Aug’21 (twoyear CAGR of +20%) v/s a decline of 14% in Aug’20. IPRULIFE grew at 34.3% YoY (twoyear CAGR of -2.5%) v/s a decline of 29% in Aug’20. HDFCLIFE grew by ~27% YoY (twoyear CAGR of +20%). Max Life grew at 9.3% YoY (two-year CAGR of +10.3%).

* Among midsized players, Bajaj Allianz/Tata AIA/Birla Sun Life reported strong growth (53%/37%/34% YoY, two-year CAGR of +31%/35%/12%). Kotak Life too reported a strong growth (35% YoY, two-year CAGR of +16.5%).

* LIC reported a decline of 5.1% YoY (two-year CAGR of -1.5%; -4.2% in Jul’21) in Individual WRP. In FY22 YTD, LIC’s Individual WRP fell 0.4% YoY (two-year CAGR of - 1.8%).

* We have seen a gradual pick-up in growth over the past few months, with Aug’21 witnessing healthy trends across most players. With the continued easing of restrictions and opening up of the economy, we expect premium growth to see strong traction over FY22, with a continued focus on Non-PAR/Annuity, while ULIP will witness a gradual recovery. We prefer Max Life and IPRULIFE.

Private players’ Individual WRP market share expands to ~64% in Aug’21

The Individual WRP market share of private players expanded by 90bp MoM to ~64% in Aug'21. Over FY22 YTD, LIC’s market share stood at 38.6%. In FY22 YTD, SBILIFE (14.1%) remained the largest private insurer in terms of Individual WRP, followed by HDFCLIFE (10.3%) and IPRULIFE (7.5%). On an unweighted basis, HDFCLIFE was the largest private insurer, with a market share of 7.6%, followed by SBILIFE (7.3%) and IPRULIFE (5%).

Performance of key private players

The combined market share of listed players – SBILIFE, IPRULIFE, HDFCLIFE, and Max Life – on an Individual WRP basis stood ~63.3% in Aug’21. Tata AIA, Bajaj Allianz, and Birla Sun Life are getting firmly positioned in the 5-7th rank among largest private insurers on an Individual WRP basis. Among the key listed players on the basis of Individual WRP:

* HDFCLIFE reported a growth of 26.5% YoY (+22% YoY in FY22 YTD); total unweighted premium declined by 6% YoY (+17.1% YoY in FY22 YTD).

* SBILIFE reported a growth of 67.3% YoY (+48.2% YoY in FY22 YTD); total unweighted premium grew by 23.9% YoY (+9% YoY in FY22 YTD).

* IPRULIFE reported a growth of 34.3% YoY (+36.2% YoY in FY22 YTD); total unweighted premium grew by 43% YoY (+54% YoY in FY22 YTD).

* Max Life reported a growth of 9.3% YoY (+22.3% YoY in FY22 YTD); total unweighted premium grew by 16.5% YoY (+28% YoY in FY22 YTD).

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