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Private players’ individual WRP grows ~90% YoY (two-year CAGR of 6%) in Apr’21

LIC grew ~74% YoY (two-year CAGR of -4.7%), market share for Private Insurers stands ~60%

* Private Insurers’ Individual weighted received premium (WRP) grew 89.6% YoY in Apr’21 (two-year CAGR of 6.4%), while the industry grew 83.2% (two-year CAGR of 1.5%). This was primarily on account of a low base as Individual WRP declined ~32%/20% in Apr’20 for Private Insurers/industry due to the outbreak of COVID-19 and lockdowns. However, Insurers continue to witness a healthy pickup in Apr’21, led by a focus on Non-PAR, with ULIP showing recovery trends.

* Among listed players, SBI Life grew ~263% YoY (two-year CAGR of -1%) in Apr’21 v/s - 73% in Apr’20. HDFC Life witnessed a growth of ~96% YoY (two-year CAGR of 18%) v/s -29% in Apr’20. IPRU Life grew ~65% YoY (two-year CAGR of -14%) v/s -55% in Apr’20, while MAX Life continues to deliver a resilient performance (~121% YoY, two-year CAGR of 34%) v/s -20% in Apr’20.

* Mid-sized players reported healthy growth, with Bajaj Allianz/Kotak Life/Birla Sun Life growing 92%/53%/30% YoY (two-year CAGR of 39%/13%/-1%) v/s a decline of 16-25% for Kotak Life and Birla Sun Life, while the same for Bajaj Allianz was flat in Apr’20. Tata AIA grew ~6% (two-year CAGR of 21%) v/s a growth of 37% YoY in Apr’20.

* LIC grew ~74% YoY (two-year CAGR of -4.7%) v/s a decline of 48% in Apr’20) in Individual WRP.

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

Private players’ individual WRP market share stands ~60% in Apr’21

Private players’ individual WRP market share stood ~60% in Apr’21 (flat MoM), while the same for LIC stood at 40%. In Apr’21, SBI Life (11.5%) remained the largest Private Insurer in terms of Individual WRP, followed by HDFC Life (11.2%), and IPRU Life (7.7%). On a un-weighted basis, HDFC Life was the largest Private Insurer with a market share of 12.3%, followed by SBI Life (9.5%) and IPRU Life (6.6%).

Performance of key Private Insurers

The combined market share of listed players – SBI Life, ICICI Prudential Life, HDFC Life, and Max Life – on an individual WRP basis stood ~62.4% in Apr’21 (v/s ~61% in FY21). Tata AIA, Bajaj Allianz, and Birla Sun Life are getting firmly positioned in the 5- 7th rank among the largest Private Insurers on an Individual WRP basis.

Among key listed players, on an Individual WRP basis –

* HDFC Life grew 95.8% YoY (two-year CAGR of 18.2% in Apr’21); total unweighted premium rose 78.5% (two-year CAGR of -8.4% in Apr’21).

* SBI Life grew 263.1% YoY (two-year CAGR of -1.0% in Apr’21); total un-weighted premium rose 1.2% (two-year CAGR of 0.8% in Apr’21).

* IPRU Life grew 65% YoY (two-year CAGR of -13.9% in Apr’21); total un-weighted premium rose 151.1% (two-year CAGR of 0.8% in Apr’21).

* Max Life grew 121.4% YoY (two-year CAGR of 33.5% in Apr’21); total unweighted premium rose 102.2% (two-year CAGR of 31.3% in Apr’21).

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