LIC To SBI Life Deliver ‘Good’ Show In Seasonally Weak April
India’s life insurers’ revenue rose in April over a year earlier on higher group policy premiums.
India’s life insurers’ revenue rose in April over a year earlier on higher group policy premiums.
The industry’s new business premium stood at Rs 17,940 crore in April 2022, according to data released by the Insurance Regulatory and Development Authority of India. That’s a jump of 93% over a year earlier and 80% over the pre-pandemic month in 2019.
Sequentially, revenue fell 71% over March. That’s because April is a seasonally weak month after fiscal-end rush to buy plans.
The total number of policies sold rose 33% year-on-year but fell 78% over March.
The year-on-year jump was aided by a 6.8 times surge in group non-single policy premiums and 1.3 times growth in group single policy premiums. Group yearly renewable premium also witnessed 61% growth.
“The life insurance industry started FY23 on a positive note with a good show in April 2022,” Emkay Global said in its industry note. “Year-on-year growth for the sector will start to normalise from Q2 FY23 once the favourable base effect goes away. Additionally, April is a relatively lighter month for life insurers.”
Life Insurance Corp., India’s largest insurer, saw its revenue fall 73% over March to Rs 11,717 crore. Year-on-year, however, it jumped 1.6 times.
New business premium of private insurers slumped 65% to Rs 9,976 crore in April. Year-on-year, it was up 26%.
On a three-year CAGR basis, private life insurers delivered 18% retail weighted received premium growth against 5% for LIC, Emkay Global said. It expects total RWRP growth for FY23 to be around 12-13% year-on-year, with the private sector growing in the teens and LIC growing in high single digits.
The listed private life insurers, according to the brokerage, are in a position to grow strongly with relatively higher profitability, powered by their brand and ubiquitous distribution strengths. After the recent correction, the valuation is attractive, it said.
How India’s listed private insurers fared in April 2022:
HDFC Life Insurance
Revenue fell 54% over the previous month to Rs 1,463 crore.
Year-on-year, its new business premium rose 23%.
Among private peers, it enjoyed the highest market share by premium of 8.15% as on April 30.
SBI Life Insurance Co.
New business premium was down 58% over March to Rs 1,238 crore.
Year-on-year, the new business premium rose 26%.
SBI Life saw growth in the retail segment policy premiums and group yearly renewable premiums.
SBI Life’s market share stood at 6.9% in April.
ICICI Prudential Life Insurance Co.
New business premium slumped 62% over the previous month to Rs 885 crore.
Year-on-year, the revenue was up 47%.
Its market share stood at 4.93%.