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Individual WRP for private players grows 55.7% YoY in Mar’23

LIC’s WRP rises 10.2% YoY; market share for private players expands to 68.1%

* The individual weighted received premium (WRP) for private players grew 55.7% YoY in Mar’23 (up 18.2% YoY in Feb’23) aided by higher demand before the budgetary changes kick in from Apr’23. The same for industry grew 37.6% YoY in Mar’23 (up 10.5% YoY in Feb’23). For FY23, private players grew 24.2% YoY (at a three-year CAGR of 17.6%).

* Among listed players, HDFCLIFE (including Exide merger) reported a growth of 117.7% YoY in Mar’23. IPRU/MAXLIFE/SBILIFE reported growth of 59%/60.4%/11.8% YoY.

* Among mid-sized players, Tata AIA/Birla Sun Life/Kotak Life/Bajaj Allianz posted growth of 97.1%/88.0%/43.3%/68.1% YoY.

* LIC reported a growth of 10.2% YoY in individual WRP (-3.0% YoY in Feb’23). For FY23, individual WRP for LIC grew 9.5% YoY (at a three-year CAGR of 4.2%).

* The industry has been witnessing a gradual pick up over the past few months with growth rebounding to double digits. While Mar’23 saw a strong growth due to an increased demand before the budgetary changes, the growth momentum over FY24E would be a key monitorable especially in the demand for Annuity and Non-PAR policies. Protection though continues to witness a healthy recovery. We prefer SBILIFE.

On an individual WRP basis, the market share for private players expanded to ~68% in Mar’23

In terms of individual WRP, the market share for private players expanded 20bp MoM to 68.1% in Mar'23. LIC’s market share moderated marginally to 31.9%. SBILIFE (14.6%) remained the largest private insurer in terms of individual WRP in FY23, followed by HDFCLIFE (10.5%) and Tata AIA (6.8%).On an unweighted basis too, SBILIFE was the largest private insurer, with a market share of 8.0%, followed by HDFCLIFE (7.8%) and IPRU (4.6%).

Performance of key private players

On an individual WRP basis, the combined market share of listed players – SBILIFE, HDFCLIFE, MAXLIFE, and IPRU – stood at 57% of all private players in FY23. Among large private insurers, on an individual WRP basis, Tata AIA has surpassed IPRU to emerge as the third largest, MAXLIFE was at fifth while Bajaj Allianz and Birla Sun life remained firmly positioned at sixth and seventh position, respectively. Among key listed players based on individual WRP

* HDFCLIFE (including Exide merger) posted a growth of 117.7% YoY (up 34% YoY in FY23). Total unweighted premium grew 83.5% YoY (up 18.8% YoY in FY23).

* SBILIFE reported a growth of 11.8% YoY (up 18.2% YoY in FY23). Total unweighted premium rose 23.1% YoY (up 16.2% YoY in FY23).

* IPRU reported a growth of 59% YoY (7% YoY in FY23). Total unweighted premium grew 30.8% YoY (up 12.5% YoY in FY23).

* MAXLIFE reported a growth of 60.4% YoY (10.7% YoY in FY23). Total unweighted premium rose 42.6% YoY (up 13.3% YoY in FY23).

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