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Private players’ individual WRP up ~31% YoY (two-year CAGR of 10%) in Jul’21

LIC declines ~4% YoY (two-year CAGR of 2.5%); private players’ market share at ~61% at FY22YTD

* Private players’ individual weighted received premium (WRP) grew 30.5% YoY in Jul’21 (two-year CAGR of 10%; +16% in Jun’21); the industry posted growth of 15% YoY (twoyear CAGR of 7%; +10% in Jun’21). At FY22YTD, private players’ individual WRP is up 27.8% YoY (two-year CAGR of +2.3%). The same for the industry stands at 15.9% YoY (two-year CAGR of +0.6%).

* Among the listed players, (a) SBILIFE posted robust growth of ~52% YoY in Jul’21 (twoyear CAGR of +14%) v/s decline of 14% YoY in Jul’20; (b) IPRULIFE was up 25.3% YoY (two-year CAGR of -11%) v/s decline of 36% YoY in Jul’20; (c) HDFCLIFE reported growth of ~18% YoY (two-year CAGR of +15.2%), and (d) MAXLIFE grew 15.6% YoY (two-year CAGR of +6.4%).

* Among the mid-sized players, (a) Tata AIA / Bajaj Allianz reported strong growth of 40%/41% YoY (two-year CAGR of +29%/34%), (b) Birla Sun Life was up 17% YoY (twoyear CAGR of +8.3%), and (c) Kotak Life posted muted growth of 3% YoY (two-year CAGR of +2%).

* LIC reported decline of 4.2% YoY (two-year CAGR of 2.5%; +1.4% in Jun’21) in individual WRP. In FY22YTD, LIC’s individual WRP grew 1.3% YoY (two-year CAGR of -1.8%).

* Since the moderation witnessed in May’21, we have seen a gradual uptick in growth over the past few months, with healthy trends reported across most players in Jul’21. With the continued easing of restrictions and opening up of the economy, we expect strong traction in premium growth over FY22, with a continued focus on NonPAR/Annuity, while ULIP would see gradual recovery. We prefer MAXLIFE and IPRU.

Private players’ individual WRP market share expands to 63% in Jul’21

Private players’ individual WRP market share expanded 170bp MoM to 63% in Jul'21. At FY22YTD, LIC’s market share stands at 39%. SBI Life (13%) remains the largest private insurer in terms of individual WRP, followed by HDFC Life (10.5%) and IPRU (7.5%), at FY22YTD. On an un-weighted basis, HDFC Life is the largest private insurer with market share of 8%, followed by SBI Life (7%) and IPRU (5.1%).

Performances 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 at ~63.4% in Jul’21. Tata AIA, Bajaj Allianz, and Birla Sun Life are getting 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 growth of 18.4% YoY (+20.6% YoY at FY22YTD); the total unweighted premium grew 3.6% YoY (+26.6% YoY at FY22YTD).

* SBI Life reported growth of 51.7% YoY (+40.3% YoY at FY22YTD); the total unweighted premium declined 5.7% YoY (+3.6% YoY at FY22YTD).

* IPRU Life reported growth of 25.3% YoY (+36.9% YoY at FY22YTD); the total unweighted premium grew 36.3% YoY (+58.2% YoY at FY22YTD).

* Max Life reported growth of 15.6% YoY (+27.3% YoY at FY22YTD); the total unweighted premium grew 22.1% YoY (+32.4% YoY at FY22YTD).

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