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Insurance tracker Feb’21 – Strong show amid tax planning season

The insurance industry put up a strong show in Feb’21, reporting retail NBP growth of ~27.9% and total NBP growth of 21% yoy. Both LIC and private players reported strong growth, pointing to a recovery in ULIPs and non-par products amid the seasonally strong fourth-quarter.

* Retail APE for private players grew by ~23% yoy (vs. 7% growth in Jan’21), whereas group APE declined ~38.1% yoy (vs. ~17.2% growth in Jan’21).

* On the basis of total APE, the share of private players increased to ~59.8% (~57.8% in Jan’21), marginally off its peak of ~60.2% in Feb’20. The share of retail APE came in at ~64.3% against 61.6% in Jan’21, whereas the share of group APE stood at ~45.4% against ~40.2% in Jan’21.

* HDFCL: HDFCL reported 18.1% yoy growth in APE in Feb’21 to Rs7.6bn, backed by healthy retail APE, which rose 16.1% yoy to Rs6.2bn. NBP at Rs19bn grew ~20% yoy, aided by ~33.7% yoy growth in group NBP. Policy sales fell 1% yoy. The retail APE ticket size rose 19% yoy in Feb’21, indicating the continued revival in Par and Non-Par segments.

* IPRU: IPRU reported a 39.2% yoy drop in APE to Rs10.8bn in Feb’21 due to a high base. However, retail APE grew 6.3% yoy to Rs6.3bn (reporting monthly growth after 13 months) but group APE declined 61.5% yoy to Rs4.6bn. Policy sales fell 13.9% yoy in Feb’21, while the retail APE ticket size grew by 18.4% yoy, as ULIPs picked up.  MAXL: MAXL reported APE growth of 28% yoy to Rs5.6bn. Retail APE grew 32.1% yoy to Rs5.5bn. NBP grew 30.7% yoy to Rs7.3bn. Policy sales increased 5.3% yoy, while the ticket size increased by 25.8% yoy.

* SBIL: SBIL reported stellar 51.8% yoy growth in APE to Rs10.2bn in Feb’21. Retail APE grew 53.4% yoy to Rs9.5bn. NBP increased by 61.2% yoy to Rs17.5bn. Policy sales rose 30.2% yoy, while the ticket size grew 16.8% yoy as ULIPs and non-par made a comeback.

* LIC: LIC has reported 6.3% yoy growth in APE. Retail APE grew 9.4% yoy to Rs25.4bn. NBP grew by 24.2% yoy to Rs129bn. Policy sales increased by 96.8% yoy, while the ticket size declined 45.1% yoy.

* In sector EAP, we are OW on SBIL, HDFCL and MAX, backed by a strong distribution channel and management’s focus on protection, with ULIPs and non-par savings products making a comeback.

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