General Insurance Sector Update - Premium growth driven by Health and Motor OD segments By Motilal Oswal Financial Services Ltd
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Marine business was muted in Dec’23
* The industry's gross written premium (GWP) increased 13% YoY to INR248b in Dec’23, driven by 13.4% YoY growth in the Motor OD segment. The overall Health segment grew 23% YoY. In Dec’23, Fire and Commercial Lines reported YoY growth of 11.5% and 13%, respectively; however, the Marine segment posted muted growth of 4% YoY.
* During the month, PSU players grew 13% YoY to INR 83.1b (in line with industry growth). SAHIs outperformed industry growth by reporting GWP of INR29.2b in Dec’23, up 26% YoY. Private multi-line players reported growth of 15% YoY (INR125.5b), a tad higher than industry growth.
* Among key players, ICICIGI/Bajaj Allianz grew 20%/18% YoY in Dec’23. STARHEAL posted GWP growth of 15% YoY. HDFC Ergo reported 13% growth (strong growth of 27% in Motor segment), whereas National India reported a decline of 17% YoY.
Health business up 23% YoY, fueled by higher growth in Group Health
The Health business jumped 23% YoY, with the Retail segment reporting 19% YoY growth and Group Health reporting 24% YoY growth. The overseas Health segment rose 34% YoY, whereas the government Health segment increased 67% YoY. Within the overall Health segment, SAHIs/Private multi-line players reported 27% YoY growth. Within SAHIs, STARHEAL reported 15% YoY growth, with 16%/8% YoY growth in Retail/Group segments. Within Retail Health and Group, Aditya Birla Health surged 55% YoY and 73% YoY, respectively. ILOM grew 17% YoY in Retail Health and 23% YoY in Group Health. Bajaj Allianz reported strong growth of 47% YoY in Group Health segment. PSU multi-line players posted 9% YoY growth in Retail Health and 21% YoY growth in Group Health segment (Group Health business for Oriental/New India grew 51%/20% YoY in Dec’23). Y
Motor segment clocks a steady YoY growth of 9%
The Motor business grew 9% YoY, mainly driven by healthy growth in the Motor OD segment (up 13.4% YoY). Motor TP saw a muted growth of 5.8% YoY in Dec’23. Private multi-line players outperformed PSU players in both the Motor OD segment (up 19% YoY) and the Motor TP segment (up 9% YoY). ILOM underperformed peers (private multi-line players) in the Motor OD/Motor TP segments with 15%/7% YoY growth. Bajaj Allianz posted flat growth in Motor TP vs. 4% growth in Motor OD. Acko General posted a strong 58%/30% YoY growth in the Motor OD/Motor TP segments. Go Digit clocked a strong growth of 43%/40% in the Motor OD/Motor TP segments.
YTD performances of key players
SAHIs/private multi-line players gained ~100bp/~230bp market share during Dec’23, while public players lost ~130bp share.
* ILOM reported a growth of 20% YoY (market share of 8.8% vs. 8.6%).
* Bajaj Allianz reported a growth of 18% YoY (market share of 7.3% vs. 6.2%).
* New India reported a growth of 14% YoY (market share of 13.4% vs. 13.9%).
* STARHEAL registered a growth of 15% YoY (market share of 4.8% vs. 4.7%).
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