Sector Update | 8 November 2020
Sector Update | Financials
India Life Insurance
Technology
I
nsurance
T
racker
Private players’ individual WRP grows ~14% YoY in Oct’20
LIC reports growth of ~6% YoY, market share at 43% over FY21YTD
Private players’ individual weighted received premium (WRP) reported strong growth
of 14.4% YoY in Oct’20 (v/s 3.6% YoY in Sep’20) while industry posted growth of 10.7%
YoY (v/s 4.1% YoY in Sep’20). The overall industry, which witnessed a decline since the
outbreak of COVID-19, has reported strong growth in Oct’20 after bouncing back to
the positive trajectory in Sep’20. For FY21YTD, private players’ individual WRP
declined 7.8% YoY and for the industry, it dropped 4.8% YoY.
Amongst listed players, Max Life reported robust growth of 49% YoY followed by HDFC
Life, which grew 45% YoY. SBI Life witnessed growth of 14% YoY after reporting a
decline for eight consecutive months. On the other hand, IPRU Life continues to
witness pressure and reported decline of 22% YoY.
Mid-sized players reported healthy trends with Tata AIA/Birla Sun Life/Bajaj Allianz
reporting growth of 37%/21%/3% YoY while Kotak Life reported decline of 4% YoY.
LIC continued reporting a positive trend, posting growth of 6.0% YoY (v/s 4.8% YoY in
Sep’20) in individual WRP. During FY21YTD, LIC’s individual WRP declined 0.5% YoY.
Private players’ individual WRP market share declines to ~57% in Oct’20
(57% as on FY21YTD)
Private players’ individual WRP market share declined ~530bp MoM to ~57% in
Oct’20 (v/s 63% in Sep’20) even as private players reported growth of ~14% YoY.
During FY21YTD, SBI Life (12.0%) remained the largest private insurer in terms of
individual WRP, followed by HDFC Life (9.8%) and IPRU life (6.8%). On an un-
weighted basis, SBI Life was the largest private insurer with market share of 7.2%,
followed by HDFC Life (6.9%) and IPRU Life (3.7%).
Individual WRP and YoY growth (%)
Individual
WRP, INRm
Grand Total
Total Public
Oct-20
57,600
24,512
YoY
growth
10.7%
6.0%
Performance 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 63.7% as at Oct’20 (v/s
Total Private
33,088
14.4%
62.9% in FY20). Tata AIA, Bajaj Allianz and Birla Sun Life are getting firmly positioned
SBI Life
7,873
14.0%
amongst the 5-7th largest private insurers based on individual WRP. Amongst the
HDFC Life
5,460
45.3%
key listed players, on the basis of individual WRP –
ICICI Prudential
4,332
-21.6%
HDFC Life
reported growth of 45.3% YoY (+7.5% YoY in FY21YTD); total un-
Max Life
3,412
48.9%
weighted premium grew ~53% YoY (+12.4% YoY in FY21YTD).
Tata AIA
2,350
36.9%
SBI Life
reported growth of 14.0% YoY (-15.5% YoY in FY21YTD); total un-
Bajaj Allianz
1,704
3.0%
weighted premium grew 12% YoY (+14.6% YoY in FY21YTD).
Birla Sun Life
1,368
21.4%
IPRU Life
reported decline of 21.6% YoY (-35.6% YoY in FY21YTD); total un-
PNB Met Life
1,008
25.6%
weighted premium grew 6% YoY (-10.5% YoY in FY21YTD).
Kotak Life
967
-3.8%
Max Life
reported growth of 48.9% YoY (+9.3% YoY in FY21YTD); total un-
India First Life
740
27.6%
weighted premium grew 47% YoY (+13.8% YoY in FY21YTD).
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 November 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 Oct’20 basis
INR m
Grand Total
Total Public
Total Private
HDFC Life
SBI life
ICICI Prudential
Bajaj Allianz
Max Life
Kotak Life
Birla Sun Life
TATA AIA
India First Life
Oct-20
227,760
155,481
72,279
16,588
15,910
9,902
6,457
4,889
3,092
3,021
2,999
1,600
YoY
growth
31.9%
36.1%
23.6%
53.1%
11.8%
5.9%
61.3%
47.4%
-7.7%
-14.4%
59.5%
16.4%
FY21YTD
1,475,036
1,035,661
439,375
102,204
105,900
54,466
27,597
29,837
19,644
23,025
19,158
9,930
YoY
growth
3.1%
2.1%
5.5%
12.4%
14.6%
-10.5%
4.2%
13.8%
-17.3%
29.6%
28.0%
0.8%
FY20
YoY
Growth
2,588,966
20.6%
1,779,771
25.2%
809,196
11.5%
173,963
16.2%
165,918
20.3%
123,482
20.4%
51,787
5.2%
55,836
8.2%
51,058
28.4%
36,571
-6.6%
32,411
30.9%
17,725
-14.2%
Source: Company, MOFSL
Exhibit 2:
Individual WRP, growth and market share – sorted on Oct’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
PNB Met Life
Kotak Life
Oct-20
57,600
33,088
24,512
7,873
5,460
4,332
3,412
2,350
1,704
1,368
1,008
967
YoY
growth
10.7%
14.4%
6.0%
14.0%
45.3%
-21.6%
48.9%
36.9%
3.0%
21.4%
25.6%
-3.8%
Mkt
share
100.0%
57.4%
42.6%
13.7%
9.5%
7.5%
5.9%
4.1%
3.0%
2.4%
1.7%
1.7%
FY21YTD
341,546
193,412
148,134
41,110
33,569
23,177
20,990
15,146
10,357
8,807
6,040
6,945
YoY
growth
-4.8%
-7.8%
-0.5%
-15.5%
7.5%
-35.6%
9.3%
24.0%
9.3%
9.3%
-6.6%
0.9%
Mkt
share
100.0%
56.6%
43.4%
12.0%
9.8%
6.8%
6.1%
4.4%
3.0%
2.6%
1.8%
2.0%
FY20
734,885
420,314
314,572
97,711
59,646
66,427
40,785
26,918
19,268
17,018
12,964
16,454
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%
-5.5%
1.8%
-1.3%
2.2%
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
Oct-20
227,760
72,279
22.0%
22.9%
13.7%
6.8%
4.1%
8.9%
4.2%
4.3%
2.0%
1.1%
Un weighted Premiums
FY21YTD
1,475,036
439,375
24.1%
23.3%
12.4%
6.8%
4.4%
6.3%
5.2%
4.5%
1.8%
1.1%
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%
Oct-20
57,600
33,088
23.8%
16.5%
13.1%
10.3%
7.1%
5.1%
4.1%
2.9%
3.0%
2.0%
Individual WRP
FY21YTD
FY20
341,546
734,885
193,412
420,314
21.3%
23.2%
17.4%
14.2%
12.0%
15.8%
10.9%
9.7%
7.8%
6.4%
5.4%
4.6%
4.6%
4.0%
3.6%
3.9%
3.1%
3.1%
2.2%
2.1%
Source: Company, MOFSL
8 November 2020
2
 Motilal Oswal Financial Services
Sector Update | Financials
NOTES
8 November 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
case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30 days take appropriate measures to make the recommendation
consistent with the investment rating legend.
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No
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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 November 2020
4