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Private players’ Individual WRP grows ~29% YoY (two-year CAGR of ~9%) in Nov’21

LIC grows ~22% YoY (two-year CAGR of -25%), Private players’ market share ~63% over FY22 YTD

* Private players’ Individual weighted received premium (WRP) grew 28.6% YoY in Nov’21 (two-year CAGR of +9.3%; +23.4% in Oct’21), while the industry posted a growth of 26% (two-year CAGR decline of -8.1%; +12.6% in Oct’21). In FY22 YTD, private players’ Individual WRP grew 30.1% YoY (two-year CAGR of +9.6%). The same for the industry grew 19.4% YoY (two-year CAGR of +3.7%).

* Among listed players, MAX Life/SBI Life posted a strong ~36%/30% YoY growth in Nov’21 (two-year CAGR of +20.9%/+10.8%), while IPRU Life posted a modest 13% YoY growth (two-year CAGR of -11.6%) v/s a decline of 31% YoY in Nov’20. HDFC Life reported a muted growth of ~1.7% YoY (two-year CAGR of +10.6%).

* Among mid-sized players, Bajaj Allianz/Tata AIA reported strong growth (+71%/+60% YoY, two-year CAGR of +27.3%/+26.1%), while Birla Sun Life reported modest growth (+10% YoY, two-year CAGR of -9.9%). Kotak Life reported strong growth (+36% YoY, two-year CAGR of +2.3%).

* LIC reported a growth of 21.7% YoY (two-year CAGR of -25.5%; -1.9% in Oct’21) in Individual WRP. In FY22 YTD, LIC’s Individual WRP grew 5% YoY (two-year CAGR of - 4.3%).

* We have seen a healthy pickup in growth over the past few months, with Nov’21 continuing to witness healthy trends across most players. We expect premium growth to see strong traction over FY22, with a continued focus on Non-PAR/Annuity, while ULIP is likely to witness a gradual recovery. We prefer IPRU Life and SBI Life.

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

Private players’ Individual WRP market share expands 100bp MoM to ~64% in Nov'21. Over FY22 YTD, LIC’s market share stood at 37.4%. In FY22 YTD, SBI Life (15.1%) remained the largest private insurer in terms of Individual WRP, followed by HDFC Life (9.8%) and IPRU Life (7.6%). On a un-weighted basis, SBI Life was the largest private insurer with a market share of 8.8%, followed by HDFC Life (7.9%) and IPRU Life (4.9%).

Performance of key private players

The combined market share of listed players – SBI Life, IPRU Life, HDFC Life, and Max Life – on an individual WRP basis stood ~64% in Nov’21. 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 –

* HDFC Life reported a muted growth of 1.7% YoY (+18.8% in FY22 YTD); total unweighted premium grew 28.5% (+21.3% in FY22 YTD).

* SBI Life reported a growth of 30.2% YoY (+44.1% in FY22 YTD); total un-weighted premium grew 153.9% YoY (+30.8% YoY in FY22 YTD).

* IPRU Life reported a growth of 13% YoY (+31.3% in FY22 YTD); total un-weighted premium grew 27.3% (+37.9% in FY22 YTD).

* Max Life reported a strong 36% YoY growth (+18.5% YoY in FY22 YTD); total unweighted premium grew 26.6% YoY (+22.9% YoY in FY22 YTD).

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