Motilal Oswal: Growth Outlook Muted For India’s Insurance Sector; Protection Witnessing Secular Growth

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.The insurance industry has seen sharp decline in total annualised premium equivalent (APE), largely led by decline in Unit Linked Insurance Plan (ULIP) sales. However, protection growth remained strong.In Q1 FY21, life insurers (barring Max Life) reported a 30-44% plunge in total APE. Absolute value of new business (VNB) declined across insurers in the range of 16-43%, affected by the drop in APE.However, VNB margins expanded for ICICI Prudential Life Insurance Company Ltd. and SBI Life Insurance Company Ltd., while they declined for HDFC Standard Life Insurance Company Ltd., weighed by decline in credit life and high growth in the low-margin participating segment.On the other hand, Max Life’s margins were impacted due to interest rate movement despite strong protection trends. Persistency declined in ULIPs, but improved in the protection segment.As the share of the market-linked savings business stands significantly higher, we remain watchful of the persistency. The renewal premium declined during the quarter as customers utilised the grace period in making premium installments..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: Growth Outlook Muted For India’s Insurance Sector; Protection Witnessing Secular Growth

Motilal Oswal: Growth Outlook Muted For India’s Insurance Sector; Protection Witnessing Secular Growth

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