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Individual WRP for private players grows 15% YoY in Nov’24

Industry’s individual WRP grows 7% YoY; LIC’s individual WRP declines 12% YoY

* In Nov’24, the individual Weighted Received Premium (WRP) growth for private players was at 15% YoY vs the industry growth of 7% YoY. The industry growth was impacted by a YoY decline for the second consecutive month reported by LIC of 12%.

* Among listed players, individual WRP for IPRULIFE witnessed the fastest growth at 28% YoY while MAXLIFE/SBILIFE/HDFCLIFE saw a growth of 25%/9%/3%. Bajaj Allianz witnessed a decline of 13% YoY.

* The industry’s new business premium grew 13% YoY in Nov’24 driven by 18% YoY growth of private players and 10% YoY growth reported by LIC. IPRU/HDFCLIFE/MAXLIFE/Bajaj Allianz reported growth of 25%/28%/15%/22% while SBILIFE reported a decline of 4% YoY.

* We expect the premium growth to be volatile for the rest of FY25 due to surrender value regulations. Nevertheless, over the medium term, we believe these changes to be favorable for customers and help resume growth. HDFCLIFE and SBILIFE are our preferred picks in the space.

On an individual WRP basis, private players gain market share MoM

* In terms of individual WRP, the market share of private players improved ~160bp MoM to 74% in Nov'24.

* On a YTD basis, the market share of private players improved 300bp YoY to 68.9%.

* For Nov’24, SBILIFE maintained the top position with 17.9% market share with respect to individual WRP, followed by HDFCLIFE at 10.5% and Max Life at 7.2%.

* On an unweighted premium basis, IPRU was the largest private insurer with a market share of 12.7%, followed by SBILIFE (10.2%) and HDFCLIFE (9.6%).

Performance of key private players On an individual WRP basis, the combined market share of listed players – SBILIFE, HDFCLIFE, IPRU, and MAXLIFE – accounted for 58.6% of the private insurance industry and 40.4% of the overall industry as of YTDFY25. Among other prominent private insurers, TATA AIA and Bajaj Allianz have a market share of 6.8% and 5.9%, respectively.

Among key listed players on the basis of individual WRP –

* HDFCLIFE grew 2.7% YoY in Nov’24 (up 23.9% YoY in YTDFY25). The total unweighted premium grew 13.1% YoY (up 14% YoY in YTDFY25).

* SBILIFE rose 8.5% YoY in Nov’24 (up 13.2% YoY in YTDFY25). The total unweighted premium grew 8.1% YoY (down 2.1% YoY in YTDFY25).

* IPRU grew 28.1% YoY in Nov’24 (up 35.4% YoY in YTDFY25). The total unweighted premium was up 149.5% YoY in Nov’24 (up 35.4% YoY in YTDFY25).

* MAXLIFE grew 24.8% YoY in Nov’24 (up 28% YoY in YTDFY25). The total unweighted premium grew 20.9% YoY in Nov’24 (up 18.8% YoY in YTDFY25).

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