Insurer For the Month of AUGUST Up to the Month of AUGUST MoM (%) YoY(%) Market Share
FY21 FY20 FY21 FY20 FY21 FY21
ICICI Lombard General Insurance Company Limited 1,011.65 904.73 5,402.94 5,425.13 11.82% -0.41% 7.3
Bajaj Allianz General Insurance Company Limited 1,200.68 1,320.77 5,471.04 5,083.14 -9.09% 7.63% 7.4
HDFC Ergo General insurance Company Limited 941.17 758.98 3,123.75 3,113.76 24.00% 0.32% 4.22
IFFCO Tokio General Insurance Company Limited 1,022.88 908.03 3,407.81 3,439.01 12.65% -0.91% 4.61
Reliance General Insurance Company Limited 625.31 590.25 3,108.59 3,170.97 5.94% -1.97% 4.2
SBI General Insurance Company Limited 718.75 513.58 2,607.03 2,187.07 39.95% 19.20% 3.52
The New India Assurance Company Limited 1,745.07 1,836.00 11,255.34 10,714.90 -4.95% 5.04% 15.22
United India Insurance Company Limited 1,231.26 961.5 6,633.15 6,005.67 28.06% 10.45% 8.97
The Oriental Insurance Company Limited 801.96 952.13 4,559.50 5,223.31 -15.77% -12.71% 6.16
National Insurance Company Limited 912.63 964.79 4,821.53 5,587.83 -5.41% -13.71% 6.52

Source: IRDAI

Key Takeaways:

State-owned general insurers saw their premiums decline 0.5 per cent in August 2020 to Rs 4,690.92

crore compared to Rs 4,714.42 crore in August last year.

Private General Insurers’ premiums for the reporting month rose almost 10 per cent to Rs 8,448.83 crore.

The biggest gainer in premiums has been standalone health insurers, as they saw a 36.42 per cent rise in premiums during the period to Rs 1,462.92 crore, against Rs 1,072.32 crore.

ICICI Lombard gains 27 bps market share between April- August 2021

Listed Private insurer ICICI Lombard posts 11.8% YoY growth in Aug premium

Life insurers’ new business Premiums showed of 14.8% growth in August

HDFC Life Aug 20 ( in Rs. Cr.) YoY SBI  Life Aug 20 ( in Rs. Cr.) YoY
Individual APE 542.2 14% Individual APE 720.2 -14%
Total APE 667.4 17% Total APE 839.9 -6%
NBP 190.4 45% NBP 180.58 26%
ICICI Prudential Aug 20 ( in Rs. Cr.) YoY LIC Aug 20 ( in Rs. Cr.) YoY
Individual APE 406 -29% Individual APE 271.29 2%
Total APE 494 -21% Total APE 427.02 7%
NBP 892 -15% NBP 1971.42 15%

New business premiums (NBP) of life insurers saw a growth of 14.79% in August at Rs 27,039.79 crore, against Rs 23,554.94 crore in the same month last year, led by a surge in the group single premium business.

The NBP for Life Insurance Corporation of India (LIC) stood at Rs 19,714.21 crore, a rise of 15.19%.

Private life insurers saw the growth of 13.74% in their NBP at Rs 7,325.59 crore in August.

Within private players, HDFC Life Insurance showed a sharp recovery with 14% YoY growth in individual annualized premium equivalent (APE).

Peers SBI Life Insurance and ICICI Prudential Life Insurance saw contractions of 14% and 29% YoY, respectively in individual annualized premium equivalent (APE).

For the first Five months ended of FY21, Retail API of HDFC Life Insurance shrank 5.2% lowest among top private insurers. SBI Life Insurance and ICICI Prudential Life Insurance saw contractions of 25% and 41% respectively.

In August, growth came due to the group single premium business, while individual investors are still staying away.

Outlook

We have a positive outlook on HDFC Life Insurance. HDFC Life holds the highest VNB margin among them SBI Life and ICICI Prudential Life Insurance. Persistency ratio of HDFC Life increases by 200 bps to 87% In Q1FY21.  Among General Insurance Players ICICI Lombard General Insurance has the greatest market share of 7.3% increased 27 bps between April – August 2020.

DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


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