Life insurance coverage firms reported excessive development in annual premium equal (APE) throughout May 2022. This was totally on account of low base figures for the month of May 2021 that was affected by a extreme Covid pressure. Over an extended timeframe of three years, the APE for all times insurance coverage appears to be exhibiting an annualised development of about 13 per cent.
Report by Kotak Institutional Equities on Life Insurance
Life insurance coverage firms reported excessive (101%) development in annual premium equal (APE) throughout May 2022, on a low base (May 2021) that was affected by a extreme Covid-19 pressure.
The previous interval (May 2020) was additionally affected by lockdowns, making the comparability tough.
On a three-year CAGR foundation, personal gamers reported 13% APE development.
On a relative foundation, HDFC Life and Max Life gained market share m-o-m, though down yoy.
ICICI Life was weak. Reversing the pattern in 4QFY22, high 4 gamers have delivered sooner development than the remainder of the personal sector.
Private sector life gamers reported large 101% development in APE in May 2022 with 96% development in particular person enterprise. Overall APE (personal and public sector) was up 85%.
A extreme Covid wave hit the sector onerous in May 2021, main to five% development throughout this base interval.
However, even this (yoy development in May 2021) was tempered by the lockdown in May 2020; personal sector reported 15% two-year CAGR decline in May 2021.
If we have a look at three-year CAGR, i.e. May 2019-22, personal sector reported 13% APE CAGR and 12% particular person APE CAGR – such a protracted interval could, nonetheless, have much less relevance. We anticipate the bottom to normalize from 2QFY22.
On a yoy foundation, SBI Life (on low base) reported 194% APE development in particular person section, lifting development for the sector. Excluding SBI Life, personal sector was up 77% versus 96% together with SBI Life. Max Life was up 73%, marginally decrease than personal sector ex-SBI development. HDFC Life was up 52% whereas ICICI Life was weak at 36% development.
On a m-o-m foundation, the personal sector misplaced 200 bps market share to 61% in particular person APE.
HDFC Life gained share to 9.5% from 8.9% in April (9-10% over the previous few months).
Max Life gained share to five.4% from 4.8% in April 2022; the corporate had 6-7% market share previously, which declined to about 5-6% in a few months final yr. It seems that its share in Axis Bank is stabilizing.
Even as SBI Life gained share on a yoy foundation, mother share was down marginally to 14.5% from 15.6%; the corporate has gained market share to 14.7% in FY2022 from practically 13% within the previous two years.
ICICI Life stays the weakest doubtless resulting from lack of assist from ICICI Bank; the corporate misplaced market share to five.8% from 7.3% in April; the corporate has misplaced about 400 bps market share over the previous 4 years to almost 7% in FY2022.
Trends in 2HFY22, notably 4QFY22, steered that personal firms past the highest 4 listed gamers gained vital market share doubtless resulting from new banking partnerships/activation of present partnerships and diversification of product profile. These gamers reported 78% development in particular person APE in May 2022, just like ex-SBI trade development in May 2022. Bajaj Life continues to stay robust with 133% development and Tata AIA was up 131%. While Canara, IndiaFirst, Star Union, and so forth. had been robust (100%+ development), Aditya Birla SL was decrease at 67% development.
Source: www.financialexpress.com”