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Private players’ Individual WRP grows ~23% YoY in Feb’21

LIC grew ~9% YoY, private players’ market share rises to ~60% over FY21 YTD

* Private players’ Individual weighted received premium (WRP) saw a strong rebound (23% YoY) in Feb’21 (v/s 7% YoY in Jan’21), while the industry posted a 17.8% YoY growth and LIC grew at 9.4% YoY. The rebound in private players continued, led by a focus on Non-PAR, with ULIPs seeing a recovery. In FY21 YTD, private players’ Individual WRP fell 1.6% YoY. The same for the industry fell 7.5% YoY.

* Among listed players, SBILIFE posted a strong rebound (~53% YoY) in Feb’21 after showing muted trends for many months. IPRULIFE too posted a growth of 6.3% after reporting a consecutive decline for the past 13 months. The resilient performance continued at MAXF, up ~32% YoY. However, the growth momentum in HDFCLIFE slowed, up ~16% YoY (v/s 24% in Jan’21).

* Mid-sized players reported strong growth, with Bajaj Allianz/Kotak Life reporting a growth of 43%/29% YoY. Birla Sun Life/TATA AIA grew ~13%/3.5% YoY.

* LIC reported a growth of ~9% YoY (v/s a decline of 45% YoY in Jan’21) in Individual WRP. During FY21 YTD, LIC’s Individual WRP declined 15.2% YoY.

* We expect premium growth to rebound over FY22 after seeing tepid trends, with ULIP showing a revival. Players continue to focus strongly on Non-PAR and Protection segments. Among players, we prefer MAXF and SBILIFE.

Performance of key private players

The combined market share of listed players – SBILIFE, ICICI Prudential Life, HDFCLIFE, and MAXF – on an individual WRP basis stood ~60% as of Feb’21 (v/s ~63% in FY20). Tata AIA, Bajaj Allianz, and Birla Sun Life are firmly positioned among the 5-7th largest Private Insurers on individual WRP. Among the key listed players, on the basis of individual WRP –

* HDFCLIFE reported a 16.1% YoY growth (+10.8% YoY in FY21 YTD). Total unweighted premium grew ~20% YoY (+12.5% YoY in FY21 YTD).

* SBILIFE saw a strong rebound, with 53.4% YoY growth (-4% YoY in FY21 YTD). Total un-weighted premium grew 61.8% YoY (+16.8% YoY in FY21 YTD).

* IPRULIFE posted a 6.3% YoY growth (26.9% YoY decline in FY21 YTD). However, total un-weighted premium fell 19% YoY (4.3% YoY dip in FY21 YTD).

* MAXF reported a 32.1% YoY growth (+13.7% YoY in FY21 YTD). Total unweighted premium grew 30.7% YoY (+16.8% YoY in FY21 YTD).

Private players’ Individual WRP market share rose to ~64% in Feb’21 (60% in FY21 YTD)

Private players’ Individual WRP market share improved ~270bp MoM to ~64% in Feb’21 v/s ~62% in Jan’21. LIC’s market share stood at 40% in FY21 YTD. During FY21 YTD, SBILIFE (14%) remained the largest Private Insurer in terms of Individual WRP, followed by HDFCLIFE (9.5%), and IPRULIFE (7.2%). On an un-weighted basis, SBILIFE was the largest Private Insurer with a market share of 7.7%, followed by HDFCLIFE (7.3%), and IPRULIFE (4.6%).

Growth in Protection moderates v/s 1HFY21

After reporting robust growth in the Protection business over 1HFY21, the pace of growth has moderated over the past few months. However, the trend still remains healthy. For Private Insurers, Individual un-weighted non-single premium grew ~22% YoY in Feb’21, while Individual sum assured declined ~19% YoY.

Among listed players

* HDFCLIFE reported a 28% decline in sum assured as against 18% growth in total un-weighted Individual non-single premium.

* IPRULIFE reported a 26% dip in sum assured v/s a 2% growth in total unweighted Individual non-single premium.

* SBILIFE reported a 29% growth in sum assured as compared to a 52% growth in total un-weighted Individual non-single premium.

* MAXF reported a 1% fall in sum assured v/s 32% growth in total un-weighted Individual non-single premium.

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