Life Insurance: True Numbers-LIC’s leads decline; private players still in growth mode

LIC’s leads decline; private players in growth mode. 

A decline in growth of new-business premiums(NBP) for Jan ’10 stemmed from LIC’s high base last year. 
NBPs fell 40.3% yoy (up 15.3% ytd), primarily led by LIC (down 53.5%yoy, up 23% ytd). 


Private insurers recorded another month of positive NBP growth in FY10 (up 11.6% yoy, 3.3% ytd)

SBI Life, HDFC and Kotak show high yoy NBP growth 

 SBI grew 45.4% yoy, (21.1% ytd)

HDFC grew 41.6% (11.7% ytd) 

Kotak grew 25.1% (-13.6% ytd). 

ICICI (17bp) to5.8%, 

Bajaj Allianz (11bp) to 3.8% 


Reliance, Birla and ICICI show yoy NBP decline 
Of the other large insurers, 

Reliance fell 22.4% yoy, (7.8% ytd), 

Birla 24.8% yoy (up 10.1% ytd) and ICICI 9% yoy (-17% ytd). Birla lost
the most market share (10bp) to 2.9%.
 LIC fell a sizeable 53.5%,and lost market share (33bp) to 65.1%, on account of a high base
last year. In Jan ’09, LIC mobilized individual single premiums of
Rs82bn, compared to Rs16bn in Jan’ 10, and higher than FY09’s
monthly average of Rs13bn.
 
 FUTURE of Life Insurance:
The revival in NBP growth of private insurers has beenled by equity markets looking up, and a favourable “base-effect”.So far, the monthly trend is encouraging, with strong NBP growth in the last three months. We expect the industry’s APE to grow ~8% in FY10.
 


Courtesy:Anand Rathi