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Private players’ Individual WRP grows ~5% YoY in May’21

LIC declined ~22% YoY, private players’ market share falls to ~58% over FY22 YTD

* Private players’ Individual weighted received premium (WRP) reported a growth of 5% YoY in May’21, while the industry posted a decline of 8.9% YoY. This was despite a low base as Individual WRP declined ~32%/20% in May’20 for private players/industry due to the outbreak of COVID-19 and the ensuing lockdown. However, the second COVID wave, along with the lockdown in major states, have weighed down on overall performance in May’21. In FY22 YTD, private players’ Individual WRP grew 37.4% YoY. The same for the industry grew 22.7% YoY.

* Among listed players, IPRULIFE posted a growth of ~28% YoY in May’21 v/s a decline of 52% YoY in May’20. HDFCLIFE reported a growth of ~17% YoY v/s a decline of 33% YoY in May’20. MAXLIFE grew at 12.5% YoY v/s a decline of 20% YoY in May’20. SBILIFE posted a decline of 5.6% YoY v/s a decline of 46% YoY in May’20.

* Among mid-sized players, Bajaj Allianz reported a growth of 32% YoY v/s a decline of 18% YoY in May’20, while other players like Tata AIA/Birla Sun Life/Kotak Life reported a decline of 8%/15%/31% YoY v/s a growth of 3%/10%/5% YoY in May’20.

* LIC reported a decline of ~22% YoY in Individual WRP v/s a decline of 3% YoY in May’20. During FY22 YTD, LIC’s Individual WRP grew 7% YoY.

* Although rising COVID-19 cases and lockdown in key states could impact overall growth in the near term, we expect premium growth to see strong traction over FY22E with a continued focus on Non-PAR/Annuity and Protection segment, while ULIP is witnessing a gradual recovery. MAXLIFE and IPRULIFE are our preferred picks.

Private players’ Individual WRP market share contracts to 56% in May’21 (~58% in FY22 YTD)

Private players’ Individual WRP market share contracts ~370bp MoM to ~56% in May'21. Over FY22 YTD, LIC’s market share stood at 42%. In FY22 YTD, HDFCLIFE (11.3%) remained the largest private insurer in terms of Individual WRP, followed by SBILIFE (10.3%), and IPRU life (7.7%). On an unweighted basis, HDFCLIFE was the largest private insurer with a market share of 9.4%, followed by SBILIFE (6.9%) and IPRULIFE (5.7%).

Performance of key private players

The combined market share of listed players – SBILIFE, IPRULIFE, HDFCLIFE and MAXLIFE – on an Individual WRP basis stood ~60.2% in May’21 (v/s ~61% in FY21). Tata AIA, Bajaj Allianz, and Birla Sun Life are getting firmly positioned among the 5- 7th largest private insurers on an Individual WRP basis. Among the key listed players on an Individual WRP basis –

* HDFCLIFE reported a growth of 16.6% YoY (+47% YoY in FY22 YTD); total unweighted premium grew 46.6% YoY (+63% YoY in FY22 YTD).

* SBILIFE reported a decline of 5.6% YoY (+64% YoY in FY22 YTD); total unweighted premium grew 1.6% YoY (+1.3% YoY in FY22 YTD).

* IPRULIFE reported a growth of 27.7% YoY (+44% YoY in FY22 YTD); total unweighted premium declined 3.9% YoY (+38.5% YoY in FY22 YTD).

* MAXLIFE reported a growth of 12.5% YoY (+56% YoY in FY22 YTD); total unweighted premium grew 25% YoY (+58% YoY in FY22 YTD).

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