Insurance Sector Update - Strong premium growth continues By ICICI Securities
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Strong premium growth continues; 2-year CAGR performance highlights marked outperformance by private majors
otal private life insurer APE has grown by 31%/42% YoY in FY22TD / Aug’21. Strong YoY growth in total APE in August was led by SBI Life (55%), Bajaj Allianz (51%), ICICI Prudential Life* (30%), HDFC Life (18%) and Max Life (8%). Individual private insurer APE has grown 31%/39% YoY in FY22TD/Aug’21. YoY growth in August 21 individual APE was led by SBI Life (67%) followed by Bajaj Allianz (53%), IPRU Life (34%), HDFC Life (27%) and Max Life (9% YoY). SBI Life outperformed even on MoM basis with an individual APE growth of 10% in Aug’21 whereas HDFC Life witnessed decline of 1%. IPRU reported healthy MoM growth of 14.3%/12.5% in individual/total APE in Aug’21. Number of policy growth has been highest for SBI Life at 31% in FY22TD compared to overall private life number of 2.5%.
Is 2-year CAGR a better parameter?
Due to covid impact resulting in lower sales in April/May 2020 and resultant different pace of recovery after that, base effect is possible in monthly FY22 numbers. Hence, we have provided a 2-year CAGR of total and individual APE growth in Table 1. Among large players, the outperformers based on 2- year CAGR are Tata AIA, HDFC Life, Bajaj Allianz followed by Max Life and SBI Life.
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