Sector Update
Update | Financials
| 8 October 2020
Sector
India Life Insurance
Technology
I
nsurance
T
racker
Private players’ individual WRP back in black; ~4% YoY growth
posted in Sep’20
LIC reports growth of ~5% YoY; market share increases to 44% in 1HFY21
After reporting six consecutive months of decline, private players’ individual weighted
received premium (WRP) rebounded at 3.6% YoY in Sep’20 (v/s -5.8% YoY in Aug’20).
The industry also posted growth of 4.1% YoY (v/s -2.3% YoY in Aug’20). The overall
industry, which has reported decline since the COVID-19 outbreak, has thus reverted
to the positive trajectory for the first time since Jan’20. Private players’ individual
WRP declined 11.4% YoY for 1HFY21; for the industry, it dropped 7.4% YoY.
Among the listed players, HDFC Life reported robust growth of 43% YoY, followed by
Max Life (16% YoY growth), while SBI Life posted 4% YoY decline. On the other hand,
IPRU Life, which declined 24% YoY, continued to witness pressure.
Mid-sized players reported healthy trends. Birla Sun Life / Tata AIA / Bajaj Allianz
reported growth of 36%/25%/16% YoY, while Kotak Life saw decline of 6% YoY.
LIC continues to report a positive trend with growth of 4.8% YoY in individual WRP
(v/s 2.1% YoY in Aug’20). In 1HFY21, LIC’s individual WRP declined 1.7% YoY.
Private players’ individual WRP market share expands to ~63% for Sep’20
(57% as of 1HFY21)
Private players’ individual WRP market share expanded ~840bp MoM to ~63% in
Sep’20 (v/s 54% in Aug’20) as private players posted an increase of ~4% YoY. In
1HFY21, SBI Life (11.7%) remained the largest private insurer in terms of individual
WRP, followed by HDFC Life (9.9%) and IPRU Life (6.6%). On an unweighted basis,
SBI Life was the largest private insurer with market share of 7.2%, followed by HDFC
Life (6.9%) and IPRU Life (3.6%).
Individual WRP and YoY growth (%)
Individual
WRP, INR m
Grand Total
Total Public
Sep’20
60,531
22,573
YoY
growth
4.1%
4.8%
Performances of key private players
The combined market share of listed players – SBI Life, ICICI Prudential Life, HDFC
Life, and Max Life – on an individual WRP basis stood at ~61.0% as of Sep’20 (v/s
Total Private
37,958
3.6%
62.9% in FY20). Tata AIA, Bajaj Allianz, and Birla Sun Life are getting firmly
SBI Life
8,381
-4.4%
positioned among the 5–7th largest private insurers on individual WRP. Among the
HDFC Life
6,113
43.2%
key listed players, on the basis of individual WRP:
ICICI Prudential
4,422
-23.9%
HDFC Life
reported growth of 43.2% YoY (+2.4% YoY in 1HFY21); total
Max Life
4,232
16.3%
Tata AIA
2,763
25.0%
unweighted premium grew ~55% YoY (+6.9% YoY in 1HFY21).
Bajaj Allianz
1,838
16.2%
SBI Life
reported decline of 4.4% YoY (-20.4% YoY in 1HFY21); total unweighted
Birla Sun Life
1,674
36.1%
premium grew 18% YoY (+15.2% YoY in 1HFY21).
Kotak Life
1,380
-5.7%
IPRU Life
reported decline of 23.9% YoY (-38.2% YoY in 1HFY21); total
PNB Met Life
1,201
11.0%
unweighted premium grew 29.6% YoY (-13.5% YoY in 1HFY21).
Canara HSBC OBC
899
-23.3%
Max Life
reported growth of 16.3% YoY (+4.0% YoY in 1HFY21); total
unweighted premium grew 21.3% YoY (+9.0% YoY in 1HFY21).
Source: Company, MOFSL
Research Analyst: Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com) |Himanshu
Taluja
(Himanshu.Taluja@motilaloswal.com)
Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com) |
Yash Agarwal
(Yash.Agarwal@motilaloswal.com)
Investors
8 October 2020
are advised to refer through important disclosures made at the last page of the Research Report.
1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Sector Update | Financials
Exhibit 1:
Un-weighted new business premium and growth – sorted on Sep’20 basis
INR m
Grand Total
Total Public
Total Private
SBI Life
HDFC life
ICICI Prudential
Max Life
Kotak Life
Bajaj Allianz
Birla Sun Life
TATA AIA
Canara HSBC OBC
Sep’20
253,663
166,028
87,634
22,259
20,287
12,158
6,013
4,814
4,137
3,883
3,469
1,825
YoY
growth
26.5%
30.1%
20.1%
18.0%
55.2%
29.6%
21.3%
36.4%
-20.5%
8.4%
30.6%
22.3%
FY21YTD
1,247,276
880,180
367,096
89,990
85,616
44,564
24,948
16,553
21,140
20,004
16,160
9,711
YoY
growth
-0.8%
-2.2%
2.6%
15.2%
6.9%
-13.5%
9.0%
-18.9%
-6.0%
40.6%
23.5%
27.4%
FY20
2,588,966
1,779,771
809,196
165,918
173,963
123,482
55,836
51,058
51,787
36,571
32,411
15,275
YoY
Growth
20.6%
25.2%
11.5%
20.3%
16.2%
20.4%
8.2%
28.4%
5.2%
-6.6%
30.9%
4.6%
Source: Company, MOFSL
Exhibit 2:
Individual WRP, growth, and market share – sorted on Sep’20 basis
INR m
Grand Total
Total Private
Total Public
SBI Life
HDFC Life
ICICI Prudential
Max Life
Tata AIA
Bajaj Allianz
Birla Sun Life
Kotak Life
PNB Met Life
Sep’20
60,531
37,958
22,573
8,381
6,113
4,422
4,232
2,763
1,838
1,674
1,380
1,201
YoY
growth
4.1%
3.6%
4.8%
-4.4%
43.2%
-23.9%
16.3%
25.0%
16.2%
36.1%
-5.7%
11.0%
Mkt
share
100.0%
62.7%
37.3%
13.8%
10.1%
7.3%
7.0%
4.6%
3.0%
2.8%
2.3%
2.0%
FY21YTD
283,946
160,324
123,622
33,236
28,110
18,845
17,578
12,795
8,653
7,439
5,979
5,032
YoY
growth
-7.4%
-11.4%
-1.7%
-20.4%
2.4%
-38.2%
4.0%
21.9%
10.7%
7.4%
1.7%
-11.2%
Mkt
share
100.0%
56.5%
43.5%
11.7%
9.9%
6.6%
6.2%
4.5%
3.0%
2.6%
2.1%
1.8%
FY20
734,885
420,314
314,572
97,711
59,646
66,427
40,785
26,918
19,268
17,018
16,454
12,964
YoY
growth
Mkt
share
6.2%
100.0%
4.8%
57.2%
8.3%
42.8%
9.1%
13.3%
19.0%
8.1%
-6.4%
9.0%
5.2%
5.5%
20.6%
3.7%
10.6%
2.6%
0.5%
2.3%
-1.3%
2.2%
-5.5%
1.8%
Source: Company, MOFSL
Exhibit 3:
Market share among private players on un-weighted and individual WRP — sorted on individual WRP FY21YTD
INR m
(%)
Grand Total
Total Private
SBI Life
HDFC Life
ICICI Prudential
Max Life
Tata AIA
Bajaj Allianz
Birla Sun life
Kotak Life
PNB Met Life
Reliance Life
Sep’20
253,663
87,634
25.4%
23.2%
13.9%
6.9%
4.0%
4.7%
4.4%
5.5%
1.8%
1.0%
Un-weighted Premiums
FY21YTD
1,247,276
367,096
24.5%
23.3%
12.1%
6.8%
4.4%
5.8%
5.4%
4.5%
1.8%
1.0%
FY20
2,588,966
809,196
20.5%
21.5%
15.3%
6.9%
4.0%
6.4%
4.5%
6.3%
2.2%
1.2%
Sep-20
60,531
37,958
22.1%
16.1%
11.6%
11.1%
7.3%
4.8%
4.4%
3.6%
3.2%
2.0%
Individual WRP
FY21YTD
FY20
283,946
734,885
160,324
420,314
20.7%
23.2%
17.5%
14.2%
11.8%
15.8%
11.0%
9.7%
8.0%
6.4%
5.4%
4.6%
4.6%
4.0%
3.7%
3.9%
3.1%
3.1%
2.2%
2.1%
Source: Company, MOFSL
8 October 2020
2
 Motilal Oswal Financial Services
Sector Update | Financials
NOTES
8 October 2020
3
 Motilal Oswal Financial Services
Sector Update | Financials
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
> - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In
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* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law Tribunal, Mumbai Bench.
8 October 2020
4