IGI Logo

Standalone health insurers growing at 3x of private multiline players; lower Covid claims to aid profitability

Gross domestic premium income (GDPI) for non-life insurers grew 11% YoY in Oct’21 led by both private insurers (12.1% YoY) and PSU insurers (9.5% YoY). Standalone health insurers (SAHI) reported 30% YoY growth in Oct’21 while their private (ex-SAHI) counterparts grew 9.5% YoY. FY22-TD overall GDPI growth stands at 12.5% YoY.

* Oct’21 ICICIGI GDPI declined 12% YoY (consolidated for Bharti AXA GDPI) on higher base: Basis monthly GDPI, market share for ICICIGI improved from 6.8% in Sep’21 to 9.5% in Oct’21. However, on YoY basis, Oct’21 market share declined to 9.5% from 11.9% in Oct’20. ICICIGI FY22-TD market share stands at 8.14%.

* Monthly motor registrations remained range-bound at 250k for passenger cars, 900-1,000k for 2-wheelers and 50k for CVs. On YoY basis, registrations have declined by 12% / 6% for passenger cars and 2-wheelers respectively while CVs posted growth of 23% YoY in Oct’21.

* Jump in covid claims in Oct’21 is not alarming. As per media reports, nonlife insurers received 32k claims in the first 13 days of Oct’21 vs 157k in Sep’21. Nonlife insurers have so far settled Rs208.6bn, of which Rs79bn pertained to FY21 and Rs130bn to FY22-TD

To Read Complete Report & Disclaimer Click Here

For More ICICI Securities Disclaimer https://www.icicisecurities.com/AboutUs.aspx?About=7

Above views are of the author and not of the website kindly read disclaimer