IGI Logo

Individual WRP for private players grows 11% YoY in Dec’24

Industry’s individual WRP grows 4.8% YoY; LIC’s individual WRP declines 13% YoY

*In Dec’24, the individual Weighted Received Premium (WRP) growth for private players was at 11.4% vs industry growth of 4.8%. Industry growth was impacted due to a 13% decline in the growth of LIC.

*Among listed players, individual WRP for SBILIFE witnessed the fastest growth at 16% YoY, while MAXLIFE/IPRULIFE/HDFCLIFE saw a growth of 11%/9%/12%. Bajaj Allianz witnessed a flat growth of 2% YoY.

*The industry’s new business premium declined 22% YoY in Dec’24 owing to a 41% YoY decline reported by LIC. Private players reported a growth of 7% YoY.

*In terms of new business premium, SBILIFE/IPRULIFE/MAXLIFE/Bajaj Allianz reported growth of 15.2%/4%/3%/9.7%, while HDFCLIFE reported a decline of 4.6% 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’ market share improves MoM

*The market share of private players improved ~370bp MoM to 77.7% in Dec'24. On a YTD basis, the market share of private players improved 140bp MoM to 70.3%

*For Dec’24, SBILIFE maintained the top position with 27.1% market share with respect to individual WRP, followed by HDFCLIFE at 10.2% and Tata AIA at 7.9%.

*On an unweighted premium basis, SBILIFE was the largest private player with a market share of 17.6%, followed by HDFCLIFE at 9% and IPRULIFE at 5.1%.

Performance of key private players On an individual WRP basis, the combined market share of listed players – SBILIFE, HDFCLIFE, IPRULIFE, and MAXLIFE – accounted for 60% of the private insurance industry and 41.8% of the overall industry as of YTDFY25. Among other prominent private insurers, TATA AIA and Bajaj Allianz holds market share of 7% and 5.8%, respectively. Among key listed players based on individual WRP –

*HDFCLIFE grew 12.3% YoY in Dec’24 (up 22% YoY in YTDFY25). The total unweighted premium declined 4.6% YoY (up 11.4% YoY in YTDFY25).

*SBILIFE grew 16% YoY in Dec’24 (up 13.8% YoY in YTDFY25). The total unweighted premium grew 15.2% YoY (flat YoY in YTDFY25).

*IPRULIFE grew 9.4% YoY in Dec’24 (up 31.4% YoY in YTDFY25). The total unweighted premium was up 3.9% YoY in Dec’24 (up 31.3% YoY in YTDFY25).

*MAXLIFE grew 11.2% YoY in Dec’24 (up 25% YoY in YTDFY25). The total unweighted premium grew 3.3% YoY in Dec’24 (up 16.1% YoY in YTDFY25).

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412