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Disparate volume growth and margin performance have been a unique trend in FY23-TD

Private life insurers reported 5.6% / 12% YoY growth in individual / total APE in Jul’22. Growth in individual/total APE in FY23-TD remains strong at 31.7 / 35.4% on a weak base. Life Insurance Corporation of India (LIC) maintained its business momentum with 58% / 46% YoY growth in total APE in Jul’22 / FY23-TD. We saw disparate growth and margin performance among life insurers in Q1FY23. Tata AIA and Bajaj Allianz lead the pack in terms of growth. Tata AIA also reported highest YoY growth in sum assured market share in FY23-TD. Overall VNB margin for players has mostly been boosted by higher non-par and lower ULIPs while retail protection remained muted in Q1FY23.

* Individual / Total APE grew 5.6% / 12% for private life insurers in Jul’22:

* In terms of total APE growth – BALIC (38% YoY), Tata AIA (37% YoY) and Kotak Life (14% YoY) were outperformers in Jul’22. IPRU Life reported growth of 10.5% YoY. HDFC Life (HDLI) / SBI Life (SBLI) / Max Life reported decline of 3.2% / 1.3% / 8% YoY in Jul’22. Decline in SBLI can be attributed to high base of Jul’21. SBLI’s total APE in Jun’21/Jul’21 was Rs8bn/12bn (Rs12bn/11.5bn in Jun’22/Jul’22)

* Individual APE growth remains on similar trajectory – BALIC / Tata AIA / Kotak Life outperformed with 29% / 38% / 28% YoY growth while HDLI / SBLI / IPRU Life / Max reported decline of 3.3% / 4.7% / 5.6% / 8.7% in Jul’22

* Overall sum assured grew 11% MoM while individual sum assured was up 4% MoM: In terms of total sum assured, Tata AIA saw maximum improvement in its market share from 4.5% in FY22-TD to 9% in FY23-TD followed by Kotak Life from 3.1% to 4.5% and BALIC from 8.1% to 9.3% in the same period. HDLI / IPRU Life’s total sum assured market share improved from 10.4% / 14.7% to 11.9% / 15.9% while the same for SBI Life / Max Life declined from 7% / 4.6% to 6.5% / 3.8% in the same period. In terms of Individual sum assured, Tata AIA / SBI Life / BALIC saw highest improvement in their sum assured from 10.7% / 6.9% / 3.7% in FY22-TD to 19.8% / 7.8% / 4% in FY23-TD while HDLI / IPRU Life / Max witnessed decline from 13.9% / 12.7% / 11.7% to 8.7% / 8.3% / 9% in the same period.

* LIC has posted a strong set of numbers driven by group business: LIC reported; LIC reported 5.5% YoY growth in terms of individual APE, largely in line with private peers. However, in terms of total APE, growth came in at 57.5% YoY for LIC vs 12% YoY reported by private peers in Jul’22. Individual / Overall sum assured for LIC grew 620bps / 560bps to 30% / 18% in FY23-TD.

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