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Single-digit growth in private individual WRP in Feb’25

Industry’s individual WRP declines YoY, dragged down by a significant decline reported by LIC

* In Feb’25, the individual weighted received premium (WRP) growth for private players was tepid at 1.6% YoY. The life insurance industry witnessed a 4.3% YoY decline in WRP, owing to a 17.4% YoY decline for LIC.

* Among listed players, individual WRP for MAXLIFE witnessed the fastest growth of 9.5% YoY, while HDFCLIFE posted 1% YoY growth. IPRULIFE/SBILIFE reported a decline of 13%/1%. Bajaj Allianz witnessed flat performance.

* The industry’s new business premium declined 11% YoY in Feb’25 owing to a 22% YoY decline reported by LIC, while private players reported growth of 3% YoY.

* In terms of new business premium, HDFCLIFE/IPRULIFE/Bajaj Allianz reported growth of 24%/5%/3%, while SBILIFE/MAXLIFE reported a decline of 18%/6% YoY.

* Premium growth has been tepid since the implementation of surrender value regulations in Oct’24 and witnessed a decline after 11 months. We expect premium growth to remain volatile in the near term and to recover in the medium term as these changes become favorable for customers. HDFCLIFE and SBILIFE are our preferred picks in the space.

Individual WRP market share of private players improves MoM

* The market share of private players increased ~130bp MoM to 73.4% in Feb'25, and on YTD basis, the market share of private players was at 70.8%.

* For Feb’25, HDFCLIFE was at the top with 12.8% market share in individual WRP, followed by SBILIFE at 12.6% and IPRULIFE at 7.8%.

* On an unweighted premium basis also, HDFCLIFE was the largest private player with a market share of 10.7%, followed by SBILIFE at 7.3%and IPRULIFE at 6.2%.

Performance of key private players

On an individual WRP basis, the combined market share of private listed players – SBILIFE, HDFCLIFE, IPRULIFE, and MAXLIFE – accounted for 59% 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 have a market share of 6.9% and 5.8%, respectively, in YTDFY25. Among key listed players on the basis of individual WRP –

* HDFCLIFE grew 1% YoY in Feb’25 (up 20% YoY in YTDFY25). The total unweighted premium grew 23.5% YoY (up 14% YoY in YTDFY25).

* SBILIFE declined 1% YoY in Feb’25 (up 13.2% YoY in YTDFY25). The total unweighted premium declined 18% YoY (down 6.4% YoY in YTDFY25).

* IPRULIFE declined 12.7% YoY in Feb’25 (up 22.3% YoY in YTDFY25). The total unweighted premium was up 5.3% YoY in Feb’25 (up 26.4% YoY in YTDFY25).

* MAXLIFE grew 9.5% YoY in Feb’25 (up 21.9% YoY in YTDFY25). The total unweighted premium declined 6% YoY in Feb’25 (up 12.7% YoY in YTDFY25).

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