Life Insurance - Private Players Grow Strong In February; ICICI Pru Life Picking Up Momentum: Nirmal Bang

Nirmal Bang Report

Individual annual premium equivalent for private life insurers grew faster at 20.4% YoY (versus 18.1% growth for the industry). HDFC Life Insurance Company Ltd./SBI Life Insurance Company Ltd. witnessed a growth of 27.8%/25.8% YoY with Max Life/ICICI Prudential Life Insurance Company Ltd. outperforming with growth rate of 34.4%/33.9% YoY.

LIC recorded a moderate growth of 13.3% YoY.

Industry Group APE saw a robust growth of 56% YoY, driven by a 64% YoY increase in LIC’s Group business. ICICI Life/Max Life/SBI Life grew at an accelerated rate.

On year-to-date-FY24 basis, SBI Life saw a decline in market share while other private players gained market share.

While January 2024/February 2024 have seen a healthy trend, we expect growth in March 2024 to be subdued due to a high base and slowdown in non-participating business.

We reiterate 'Buy' on SBI Life (target price of Rs 1,685, 2.5 times FY25E price/embedded ) and ICICI Life (target price of Rs 610, two times FY25E P/EV).

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