Life Insurance: Steady premium growth witnessed
Private life insurers reported 8.9%/17.6% y-o-y growth in individual/total APE a (annualised premium equivalent) in Aug’22. Growth in individual/total APE in FY23-TD remains strong at 25.3/31% y-o-y. Life Insurance Corporation of India reported 12.5%/37% y-o-y growth in total APE in Jul’22/FY23-TD.
We witnessed disparate growth and margin performance among life insurers in Q1FY23. Tata AIA and Bajaj Allianz (BALIC) led the pack in terms of growth. Tata AIA also reported highest y-o-y growth in sum assured market share in FY23-TD. Overall VNB (value of new business) margin for players has mostly been boosted by higher non-par and lower ULIPs while retail protection remained muted in Q1FY23.
Individual/total APE grew 8.9%/18% for private life insurers in Aug’22: o In terms of total APE growth – BALIC (40% y-o-y), Tata AIA (54% y-o-y) and HDFC Life (19% y-o-y) were outperformers in Aug’22. IPRU Life reported growth of 10.5% y-o-y. SBI Life (SBLI) reported total APE growth of 1.8% y-o-y on adverse base. Max Life reported a decline of 11% y-o-y. Individual APE growth remains on similar trajectory – BALIC/Tata AIA /HDFC Life outperformed with 38%/52.3%/17% y-o-y growth while SBLI/IPRU Life/Max reported decline of 5.2%/ 14%/11.6% in Aug’22, respectively.
Overall sum assured declined 8% m-o-m while individual sum assured was up 4% m-o-m: In terms of total sum assured, Tata AIA saw maximum improvement in its market share from 4.6% in FY22-TD to 8.4% in FY23-TD followed by Kotak Life from 3.3% to 4.5%. In terms of individual sum assured, Tata AIA/SBI Life/BALIC witnessed highest improvement in their sum assured from 10.6%/7.3%/3.5% in FY22-TD to 19.4%/7.7%/4.2% in FY23-TD while HDLI/IPRU Life/ Max witnessed decline from 13.3%/ 12.1%/11.1% to 9%/ 8% /9% during the same period, respectively.
LIC lagged its private peers in terms of Aug’22 y-o-y growth but YTD performance has been very strong with 37% total APE growth and gain in market share. It reported 5.2% y-o-y growth in terms of individual APE vs 9% reported by private insurers.
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