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Surrender regulations affect FY25 individual WRP growth

Industry’s individual WRP inches up YoY in Mar’25; new business premium hit by LIC’s weak growth momentum

* In Mar’25, the individual weighted received premium (WRP) growth for private players continued to be in single digits at 3.2% YoY. The life insurance industry witnessed a 2.1% YoY growth in WRP, owing to a flattish performance by LIC. For FY25, individual WRP grew 11% YoY (15%/1% for private players/LIC)

* Among listed players, individual WRP for MAXLIFE continues to grow the fastest at 11% YoY, while HDFCLIFE/ SBILIFE posted 6%/4%% YoY growth. IPRULIFE/ BALIC reported a decline of 12%/4% YoY.

* The industry’s new business premium grew 2% YoY in Mar’25 on the back of 3%/2% YoY growth for private players/LIC. For FY25, new business premium grew 5% YoY driven by 10%/2% YoY growth of private players/LIC.

* In terms of new business premium, HDFCLIFE/IPRULIFE/MAXLIFE reported a growth of 5%/18%/1%, while SBILIFE/BALIC reported a decline of 11%/7% YoY.

* Premium growth has been tepid since the implementation of surrender value regulations in Oct’24, but it witnessed a slight recovery in Mar’25 after declining last month. We expect a gradual recovery in FY26 with private insurers expanding reach through geographical penetration. HDFCLIFE and SBILIFE are our preferred picks.

Individual WRP market share improves in FY25 for private players

* The market share of private players declined MoM to 69.8% in Mar'25 (73.4% in Feb’25), and in FY25, the market share of private players was 70.6% (67.8% in FY24).

* In Mar’25, HDFCLIFE maintained the top position with 10.9% market share in individual WRP, followed by SBILIFE at 9.4% and MAXLIFE at 8.7%.

* On an unweighted premium basis also, HDFCLIFE was the largest private player with a market share of 7.9%, followed by SBILIFE at 6.3% 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 58% of the private insurance industry and 41% of the overall industry as of FY25. Among other prominent private insurers, TATA AIA and BALIC have a market share of 7.1% and 5.9%, respectively, in FY25. Among key listed players based on individual WRP –

* HDFCLIFE grew 6% YoY in Mar’25 (up 17.5% YoY in FY25). The total unweighted premium grew 5% YoY (up 12.6% YoY in FY25).

* SBILIFE grew 4% YoY in Mar’25 (up 12.3% YoY in FY25). The total unweighted premium declined 11.4% YoY (down 7% YoY in FY25).

* IPRULIFE declined 12.1% YoY in Mar’25 (up 15.2% YoY in FY25). The total unweighted premium was up 18.1% YoY in Mar’25 (up 24.9% YoY in FY25).

* MAXLIFE rose 11% YoY in Mar’25 (up 19.7% YoY in FY25). The total unweighted premium increased 1% YoY in Mar’25 (up 10.5% YoY in FY25).

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