IGI Logo

Strong YoY growth of private individual WRP at 20% in Jan’25

Industry’s individual WRP grows 11% YoY; LIC’s individual WRP continues to decline YoY

* InJan’25, the individual Weighted Received Premium (WRP) growth for the private players was at 19.6% YoY vs industry growth of 10.7% YoY. De-growth of 7.1% YoY for LIC impacted the industry growth.

* Among listed players, individual WRP for HDFCLIFE witnessed the fastest growth of 25% YoY while MAXLIFE/IPRULIFE/SBILIFE witnessed growth of 14%/9%/18% YoY. Bajaj Allianz witnessed a single-digit growth of 8% YoY.

* The industry’s new business premium declined 8% YoY in Jan’25 owing to 14% YoY decline reported by LIC, while growth of the private players was flattish YoY.

* In terms of new business premium, HDFCLIFE/IPRU/ MAXLIFE reported growth of 26%/14%/9% while SBILIFE and Bajaj Allianz reported a decline of 37%/7% YoY.

* We expect the premium growth to remain volatile for the rest of FY25 due to the impact of 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.

Individual WRP market share of private players remains above 70%

* The market share of private players declined ~560bp MoM to 72.1% in Jan'25 and on YTD basis, the market share of private players was at 70.5%.

* For Jan’25, SBILIFE maintained the top position with 17.5% market share with respect to individual WRP, followed by HDFC Life at 12.3% and Tata AIA at 6.6%.

* On an unweighted premium basis also, SBI Life was the largest private player with a market share of 10.6%, followed by HDFC Life at 9.8%and IPRU Life at 5.8%.

Performance of key private players

* On an individual WRP basis, the combined market share of private listed players – SBILIFE, HDFCLIFE, IPRU, and MAXLIFE – accounted for 60% of the private insurance industry and 41.9% of the overall industry as of YTDFY25. Among other prominent private insurers, TATA AIA and Bajaj Allianz have a YTDFY25 market share of 6.9% and 5.7%, respectively. Among key listed players on the basis of individual WRP –

* HDFCLIFE grew 25.3% YoY in Jan’25 (up 22% YoY in YTDFY25). The total unweighted premium grew 25.5% YoY (up 12.9% YoY in YTDFY25).

* SBILIFE rose 18.4% YoY in Jan’25 (up 14.3% YoY in YTDFY25). The total unweighted premium declined 37.2% YoY (down 5.4% YoY in YTDFY25).

* IPRU grew 8.7% YoY in Jan’25 (up 28.3% YoY in YTDFY25). The total unweighted premium was up 13.6% YoY in Jan’25 (up 29.2% YoY in YTDFY25).

* MAXLIFE grew 13.8% YoY in Jan’25 (up 23.5% YoY in YTDFY25). The total unweighted premium grew 8.8% YoY in Jan’25 (up 15.3% 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