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Private players’ individual WRP up ~90% YoY in Mar’21, albeit on low base

LIC up ~196% YoY on low base; private player’s market share reaches 60% in FY21

* Private players’ individual weighted received premium (WRP) increased 89.5% YoY in Mar’21 (v/s 23.0% YoY in Feb’21), while the industry posted growth of 121.3% YoY. This was primarily on account of a low base – individual WRP for private players / the industry declined ~40%/44% in Mar’20, weighed by the COVID outbreak and subsequent lockdown. However, insurers witnessed a healthy uptick in Mar’21 (seasonally strong quarter), led by a focus on Non-PAR, with ULIP showing signs of recovery. Private players’ individual WRP grew 7.5% YoY in FY21, while that of the industry was up 3.0% YoY.

* Among the listed players, SBILIFE posted growth of ~119% YoY in Mar’21 (-42% in Mar’20). IPRULIFE reported growth of ~98% (-49% in Mar’20), and HDFCLIFE grew ~75% YoY (-28% in Mar’20). On the other hand, MAXLIFE continued to deliver a resilient performance with ~56% YoY growth (-36% YoY in Mar’20).

* Mid-sized players reported strong growth, with TATA AIA / Bajaj Allianz reporting growth of 116%/104% YoY. Kotak Life / Birla Sun Life reported growth of ~63%/61% YoY. These players had reported declines of 36–39% in Mar’20.

* LIC posted growth of ~196% YoY in individual WRP (v/s decline of 65% YoY in Mar’20). In FY21, LIC’s individual WRP declined 3.2% YoY.

* The industry managed to post growth despite FY21 being a challenging year, with private players reporting growth of ~8%. We expect strong traction in premium growth over FY22, with the focus on the Non-PAR and Protection segments continuing – even as ULIP trends may remain tepid. MAXLIFE and SBILIFE are our preferred picks.

Private players’ individual WRP market share at ~60% in FY21

Private players’ individual WRP market share declined ~430bp MoM to ~60% in Mar’21 v/s ~64% in Feb’21, while LIC’s market share stood at 40% for FY21. In FY21, SBI Life (13.5%) remained the largest private insurer in terms of individual WRP, followed by HDFC Life (9.2%) and IPRU life (7.2%). On an un-weighted basis, SBI Life was the largest private insurer (with market share of 7.4%), followed by HDFC Life (7.3%) and IPRU Life (4.7%).

Performances of key private players

The combined market share of listed players – SBI Life, ICICI Prudential Life, HDFC Life, and Max Life– on an individual WRP basis stood at ~55% in Mar’21 (v/s ~61% in FY21). Tata AIA, Bajaj Allianz, and Birla Sun Life are firmly positioned among the 5th – 7 th largest private insurers in terms of individual WRP.

Among the key listed players, on the basis of individual WRP:

* HDFC Life reported growth of 75.4% YoY (+17.3% YoY in FY21); the total unweighted premium grew ~45% YoY (+16.4% YoY in FY21).

* SBI Life reported growth of 119.2% YoY (+4.6% YoY in FY21); the total unweighted premium grew 127.2% YoY (+24.3% YoY in FY21).

* IPRU Life reported growth of 98.1% YoY (-17.9% YoY in FY21); the total unweighted premium grew 119% YoY (+5.5% YoY in FY21).

* Max Life reported growth of 56.2% YoY (+19.4% YoY in FY21); the total unweighted premium grew 56.5% YoY (+22.3% YoY in FY21).

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