Motilal Oswal: LIC’s Individual WRP Jumps 2% YoY While Private Peers Log Decline 

Motilal Oswal Report

Private players’ individual weighted received premium declined 5.8% in August 2020 (versus 7.1% decline YoY in July 2020).

The industry also posted decline of 2.3% YoY (versus 0.3% decline YoY in July 2020).

Overall decline has moderated from levels seen over March-May 2020, but was higher than July 2020 levels, largely attributed to slower growth in Life Insurance Corporation of India.

FY21 year-to-date, private players’ individual WRP has declined 15.2% YoY; for the industry, it has dropped 10.1% YoY.

Among the listed players, HDFC Standard Life Insurance Company Ltd. and Max Life Insurance reported positive trends with growth of 14% YoY and 11% YoY, respectively.

On the other hand, SBI Life Insurance Company Ltd. posted decline of 14% YoY.

ICICI Prudential Life Insurance Company Ltd. also continues to witness pressure and reported decline of 29% YoY.

Mid-sized players reported mixed trends. Tata AIA and Bajaj Allianz reported growth of 34% and 13% YoY, while Birla Sun Life reported decline of 6% YoY. Kotak Life reported a flattish trend.

LIC continued to report a positive trend, albeit at a slower pace, led by 2.1% YoY growth in individual WRP (versus 9.6% YoY in July 2020). FY21 year-to-date, LIC’s individual WRP has declined 3.1% YoY.

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