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Here's how life insurance business panned out in July 2022

  • India Infoline News Service
  • 09 Aug , 2022
  • 3:15 PM
Normally, such business numbers are broken up based on nature of ownership (LIC versus private insurers) as well as company-wise. The IRDAI analysis also compares first year premiums and sum assured on a monthly basis and cumulative year-to-date basis. Here are some broad takeaways.
  1. LIC dominates the life insurance market in July 2022 also , but there is a small change compared to June 2022 data. The market share of LIC in total premium income is up 250 bps at 68.57% MOM, while the share of private insurers has correspondingly fallen. The premium income for June 2022 was Rs39,079 crore overall, of which LIC accounted for Rs29,117 crore and private life insurers Rs9,962 crore. While overall premium pie has grown considerably in July 2022, the growth has been entirely captured by LIC.
  2. Let us now turn to the mix of premiums collected in July 2022, LIC had a market share of 82.70% in group single premium and 96.59% in group non-single premium. However, in individual non-single premiums, private insurers had a market share of 62.69% and even in individual single premium, their market share was an impressive 43.98%.
  3. However, the situation changes drastically if you look at sum assured. Here the private life insurers have an overall market share of 81.86%. That is due to private life insurers selling more of pure risk term covers where the ratio of sum assured to premium is higher. LIC, on the other hand, is largely focused on endowments, money-backs and ULIPs. However, LIC’s share of sum assured has gone up to 18.14% in July 2022.
  4. Growth in premiums is where LIC scores brownie points in July 2022. The industry growth in premiums for July 2022 over July 2021 was a robust 91.24%. However, the private life insurers saw premium growth of just 18.54% while LIC saw premium growth of a hefty 142.02%. For LIC, July marks a positive turnaround over June.
  5. LIC growth could look steep due to the low base; since July 2021 was a weak month in terms of premium collections. To normalize, we can consider first 4 months of FY23 ended July 2022. Overall insurance premium collections were up 54.12% yoy. However, private life insurers saw growth of 38.81% in the 4 months to July 2022 while the growth in premium collections of LIC was 62.32%. LIC has dominated the month of July 2022, in terms of growth in premiums and market share.
This could be encouraging news after the disappointing listing of LIC on the bourses, but we await the stock market reaction.

Our reading of life premium collections for July 2022

Here are premiums across life insurers for July 2022 and for the first 4 months of FY23.

Insurer Category Jul 2021 Jul 2022 Growth % Jul-21 YTD Jul-22 YTD Growth % Share
Private Total 8403.79 9962.22 18.54 25528.37 35435.75 38.81 31.43
Individual Single Premium 1473.88 1536.35 4.24 4148.13 5130.61 23.68 43.98
Individual Non-Single Premium 4040.29 4269.58 5.68 11098.36 14650.18 32.00 62.69
Group Single Premium 2320.12 3321.97 43.18 8265.34 12643.68 52.97 17.30
Group Non-Single Premium 55.67 13.41 -75.92 89.89 52.42 -41.68 3.41
Group Yearly Renewable Premium 513.82 820.91 59.77 1926.65 2958.85 53.58 95.34
LIC of India 12030.93 29116.68 142.02 47631.62 77317.69 62.32 68.57
Individual Single Premium 2141.60 1903.02 -11.14 5497.08 6536.27 18.90 56.02
Individual Non-Single Premium 2280.91 2436.92 6.84 6937.00 8720.36 25.71 37.31
Group Single Premium 7313.42 24285.57 232.07 34477.36 60429.43 75.27 82.70
Group Non-Single Premium 176.70 435.71 146.58 507.33 1487.07 193.12 96.59
Group Yearly Renewable Premium 118.30 55.45 -53.12 212.85 144.56 -32.08 4.66
Grand Total 20434.72 39078.91 91.24 73159.98 112753.43 54.12 100.00
Individual Single Premium 3615.49 3439.37 -4.87 9645.21 11666.88 20.96 100.00
Individual Non-Single Premium 6321.20 6706.50 6.10 18035.35 23370.53 29.58 100.00
Group Single Premium 9633.54 27607.54 186.58 42742.70 73073.12 70.96 100.00
Group Non-Single Premium 232.38 449.12 93.27 597.22 1539.49 157.78 100.00
Group Yearly Renewable Premium 632.12 876.37 38.64 2139.50 3103.41 45.05 100.00
Data Source: IRDAI

While LIC showed strong growth traction in July 2022, it is still focussed on group policies, which constitute 85% of their overall premium flows. Even in this high growth period, LIC reported flat to negative growth in individual premium collections. However, LIC can take solace from the fact that even for the private insurers, the growth in individual policy premiums for July 2022 was in low single digits only.

What we read from the sum assured numbers for July 2022

Here is sum assured across life insurers for July 2022 and for the first 4 months of FY23.

Insurer Category Jul 2021 Jul 2022 Growth % Jul-21 YTD Jul-22 YTD Growth % Share
Private Total 341593.68 435141.12 27.39 1391603.54 1627822.27 16.97 81.86
Individual Single Premium 1971.19 1586.68 -19.51 6087.20 5743.12 -5.65 53.88
Individual Non-Single Premium 108887.72 111297.19 2.21 375697.20 395331.49 5.23 70.29
Group Single Premium 79571.63 121921.99 53.22 328833.06 427411.01 29.98 99.92
Group Non-Single Premium 30878.85 18567.96 -39.87 119096.71 48816.30 -59.01 88.97
Group Yearly Renewable Premium 120284.29 181767.31 51.11 561889.36 750520.35 33.57 80.46
LIC of India 95443.60 154117.75 61.48 246065.00 360670.82 46.58 18.14
Individual Single Premium 1576.76 1474.51 -6.49 4023.02 4916.17 22.20 46.12
Individual Non-Single Premium 43263.80 50584.41 16.92 115433.54 167075.77 44.74 29.71
Group Single Premium 50.78 96.73 90.48 179.06 329.87 84.23 0.08
Group Non-Single Premium 1473.00 1198.04 -18.67 4690.47 6052.42 29.04 11.03
Group Yearly Renewable Premium 49079.25 100764.06 105.31 121738.91 182296.60 49.74 19.54
Grand Total 437037.28 589258.88 34.83 1637668.54 1988493.10 21.42 100.00
Individual Single Premium 3547.95 3061.18 -13.72 10110.22 10659.29 5.43 100.00
Individual Non-Single Premium 152151.53 161881.60 6.39 491130.74 562407.26 14.51 100.00
Group Single Premium 79622.42 122018.72 53.25 329012.12 427740.88 30.01 100.00
Group Non-Single Premium 32351.85 19766.00 -38.90 123787.19 54868.72 -55.67 100.00
Group Yearly Renewable Premium 169363.54 282531.37 66.82 683628.27 932816.95 36.45 100.00
Data Source: IRDAI

When it comes to sum assured, private insurers have an edge in terms of market share at 81.86%. However, compared to June 2022, LIC has shown a sharp improvement in sum assured market share, as sales of pure risk covers picked up. That is also evident in the growth in sum assured for LIC, which is nearly twice that of private insurers in July 2022.

Private life insurers; and their July 2022 show

Out of the 23 private life insurance players, the top 5 insurers viz. SBI Life, HDFC Life, ICICI Prudential Life, Bajaj Allianz Life and Max Life accounted for 71.06% of premium collections. This ratio has fallen over 100 bps over June 2022, showing reducing concentration. Among the larger players, Bajaj Allianz, Aditya Birla Sun Life and Kotak Life showed premium growth of more than 40% on a yoy basis. SBI Life, despite its high base, displayed growth of 29% in premium collections in the month of July 2022.

The private insurance space appears to be consolidating with big names like SBI Life, HDFC Life, ICICI Prudential Life, Max Life, Aditya Birla Life, Kotak Life and Tata AIA; taking almost the entire private life insurance market at the cost of smaller players. But the big story of July 2022 has been the sharp revival in performance of LIC.

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How life insurance business panned out in September 2022?

  • India Infoline News Service
  • 12 Oct , 2022
  • 5:51 AM
For September 2022, IRDAI announced the new business data a few days late. But the data again seems to be showing a sterling performance by LIC while the private insurers have struggled in the month of September 2022. Here are some key points that emerge from the latest monthly report put out by IRDAI.

Key takeaways from Life Insurance new business numbers

a)      LIC dominates the life insurance market in September 2022 also, and it has actually built up a bit of market share in the last one year. The market share of LIC in total premium income for September 2022 is up nearly 270 bps at 68.72% compared to June 2022, while the share of private insurers fell proportionately. The premium income for September 2022 was Rs36,367 crore overall, of which LIC accounted for Rs24,991 crore and private life insurers Rs11,375 crore. On a six months cumulative basis for FY23, LIC has a market share of 68.25%; still quite impressive.


b)      Let us now turn to the mix of premiums collected in September 2022. LIC had a market share of 83.08% in group single premium and 96.53% in group non-single premium. LIC virtually dominates the group life cover space. However, in individual non-single premiums, private insurers had a market share of 64.25% and even in individual single premium, their market share was an impressive 44.79%. This market share pertains to the cumulative for the first six months of FY23.


c)      However, the situation changes drastically if you look at sum assured. Here the private life insurers have an overall market share of 83.33%. That is due to private life insurers selling more of pure risk term covers where the ratio of sum assured to premium is higher. LIC is largely focused on endowments, money-backs and ULIPs, which are more of savings cum insurance products and not pure term covers.


d)      Growth in premiums is where LIC scores really high in September 2022. The industry growth in premiums for September 2022 over September 2021 was 17.31%. However, the private life insurers saw premium contraction of -8.86% while LIC saw premium growth of 34.94%. LIC has seen a positive thrust to its business since July 2022.


e)      Monthly growth may be slightly misleading, so we also look at cumulative growth for six months of FY23. Overall insurance premium collections were up 37.88% yoy. However, private life insurers saw growth of 23.29% in the 6 months to September 2022 while the growth in premium collections of LIC was an impressive 45.92%. LIC has dominated September 2022 in terms of monthly and cumulative FY23 growth.

For now, the stock price of LIC may not be reacting, but the fundamentals in terms of business flow collections are surely stepping up.

Our reading of life premium collections for September 2022

Here are premiums across life insurers for September 2022 and for the first 6 months of the fiscal year FY23 on a cumulative basis.

Insurer Category Sep 2021 Sep 2022 YoY % Sep-21 YTD Sep-22 YTD YoY % Share
Private Total 12480.96 11375.27 -8.86 46869.30 57785.88 23.29 31.75
Individual Single Premium 1681.79 1939.40 15.32 7280.26 8739.06 20.04 44.79
Individual Non-Single Premium 4957.47 5263.17 6.17 20404.14 24640.11 20.76 64.25
Group Single Premium 5093.89 3534.59 -30.61 15824.93 19733.47 24.70 16.92
Group Non-Single Premium 18.29 18.75 2.48 127.86 89.76 -29.80 3.47
Group Yearly Renewable Premium 729.52 619.37 -15.10 3232.10 4583.47 41.81 93.23
LIC of India 18520.21 24991.26 34.94 85112.59 124191.08 45.91 68.25
Individual Single Premium 2292.19 2118.83 -7.56 10100.58 10770.90 6.64 55.21
Individual Non-Single Premium 2523.94 2495.10 -1.14 11805.26 13712.80 16.16 35.75
Group Single Premium 13367.09 19715.92 47.50 61741.34 96878.20 56.91 83.08
Group Non-Single Premium 191.20 567.71 196.92 805.41 2496.19 209.93 96.53
Group Yearly Renewable Premium 145.79 93.70 -35.73 660.00 332.99 -49.55 6.77
Grand Total 31001.17 36366.53 17.31 131981.89 181976.96 37.88 100.00
Individual Single Premium 3973.98 4058.22 2.12 17380.84 19509.96 12.25 100.00
Individual Non-Single Premium 7481.41 7758.27 3.70 32209.40 38352.91 19.07 100.00
Group Single Premium 18460.98 23250.51 25.94 77566.27 116611.67 50.34 100.00
Group Non-Single Premium 209.50 586.46 179.94 933.28 2585.95 177.08 100.00
Group Yearly Renewable Premium 875.31 713.07 -18.54 3892.10 4916.47 26.32 100.00

Data Source: IRDAI

While LIC showed strong growth traction in September 2022, it is still focussed on group policies, which constitute 81.54% of their overall premium flows. Even in this high growth period, LIC reported flat to negative growth in individual premium collections. However, LIC can take solace from the fact that even for private insurers, the growth in individual policy premiums for September 2022 was under 15% on an average.

What we read from the sum assured numbers for September 2022

Here is sum assured across life insurers for September 2022 and for the first 6 months of the fiscal year FY23.

Insurer Category Sep 2021 Sep 2022 Growth % Sep-21 YTD Sep-22 YTD Growth % Share
Private Total 382816.08 461431.84 20.54 2088628.24 2547672.98 21.98 83.33
Individual Single Premium 2391.30 2146.58 -10.23 10624.38 9814.96 -7.62 55.57
Individual Non-Single Premium 114402.23 126356.23 10.45 596076.32 636857.35 6.84 70.77
Group Single Premium 120972.12 140730.11 16.33 555273.14 690856.61 24.42 99.92
Group Non-Single Premium 9258.21 15237.04 64.58 136876.60 88788.37 -35.13 90.82
Group Yearly Renewable Premium 135792.22 176961.88 30.32 789777.81 1121355.70 41.98 83.04
LIC of India 113987.74 65745.32 -42.32 461721.03 509483.56 10.34 16.67
Individual Single Premium 2019.12 1383.44 -31.48 7908.23 7848.39 -0.76 44.43
Individual Non-Single Premium 51761.21 43435.53 -16.08 216988.44 263073.42 21.24 29.23
Group Single Premium 85.37 124.43 45.76 338.43 567.97 67.83 0.08
Group Non-Single Premium 1650.94 1018.08 -38.33 8435.31 8974.52 6.39 9.18
Group Yearly Renewable Premium 58471.10 19783.83 -66.16 228050.61 229019.26 0.42 16.96
Grand Total 496803.81 527177.16 6.11 2550349.27 3057156.54 19.87 100.00
Individual Single Premium 4410.42 3530.02 -19.96 18532.62 17663.34 -4.69 100.00
Individual Non-Single Premium 166163.44 169791.76 2.18 813064.76 899930.76 10.68 100.00
Group Single Premium 121057.48 140854.55 16.35 555611.56 691424.58 24.44 100.00
Group Non-Single Premium 10909.15 16255.12 49.00 145311.91 97762.89 -32.72 100.00
Group Yearly Renewable Premium 194263.32 196745.71 1.28 1017828.42 1350374.96 32.67 100.00
Data Source: IRDAI

When it comes to sum assured, private insurers have an edge in terms of market share at 83.33%. LIC is building on its term policy sales, but it still has a long way to catch upon sum assured rankings with the private insurers. In fact, September 2022 has been disappointing for LIC since it saw its sum assured contract by nearly 42% on a yoy basis.

Private life insurers; and their September 2022 show

Out of the 23 private life insurance players, the top 5 insurers viz. SBI Life, HDFC Life, ICICI Prudential Life, Aditya Birla Sun Life and Max Life accounted for 67.71% of premium collections. This ratio has fallen sharply and could be attributed to the fall in premium income of Bajaj Allianz. For September 2022, highest premium growth was visible for Star Union Dai-ichi and Tata AIA Life, with most of the other leading players seeing contraction in premium income on a yoy basis.

How life insurance business performed in December 2022

  • 11 Jan , 2023
  • 5:09 AM
  • For the month of December 2022, based on the monthly business data published by the IRDAI, the market of share of LIC has come down MOM while the share of private insurance companies has improved over November 2022.

In terms of yoy growth in new business, LIC dominates at 39.7% even as the private insurers lag behind at 17.6%. Here are some key points that emerge from the latest monthly report by IRDAI.

What we read from new business numbers of life insurance for December 2022

  1. LIC continues to dominate the life insurance market in December 2022 also, also its market share has seen a dip compared to the previous month. For LIC, the monthly market share of new business fell from 67.73% in the months of October and November 2022 to a lower level of 65.38% in the month of December 2022. The private sector players improved their market share of new premiums from around 32.3% to 34.6%, largely driven by sharp growth in individual single and non-single premiums. All the above market shares are based on cumulative premiums up to a particular month for FY23. Market shares are not based on standalone monthly premiums.

     
  2. The overall life insurance premium income for December 2022 at Rs26,838 crore is nearly 25% lower on MOM basis and 9.69% higher on a yoy basis. Out of this overall premium income basket, LIC accounted for Rs11,859 crore and private life insurers Rs14,980 crore. On a 9-months cumulative basis for FY23, LIC saw fall in its market share from 67.73% to 65.38%; albeit still impressive.

     
  3. How about the premium mix of LIC and the private insurers in FY23? LIC had a market share of 81.19% in group single premium and 97.43% in group non-single premium. LIC virtually dominates the group life cover space which can be attributed to its strong corporate and institutional relationships. However, in individual non-single premiums, private insurers had a market share of 66.04% and even in individual single premium, their market share was an impressive 44.87%.

     
  4. However, the situation is starkly different if you look at sum assured. Here private life insurers have an overall market share of 84.37%. This can be attributed to private life insurers selling more of pure risk term covers where the ratio of sum assured to premium is higher. LIC, is focused on endowments, money-backs and ULIPs. Hence, it has a lower market share of sum assured compared to private insurers.

     
  5. Finally, let us also look at cumulative growth in life premiums for LIC and the private insurers for FY23 (April to December). Overall insurance premium collections were up 31.16% yoy. However, private life insurers saw growth of just 17.64% in the 9 months to December 2022 while the growth in premium collections of LIC was an impressive 39.67%. December may have been challenging, but LIC is still doing well in FY23.

For LIC, the bigger challenge would be to ensure that this strong performance also reflects in stock prices. 

Evaluating life premium collections for December 2022

Here are premiums across life insurers for December 2022 and for the first 9 months of the fiscal year FY23 on a cumulative basis.

Insurer Category

Dec 2021

Dec 2022

Growth %

Dec-21 YTD

Dec-22 YTD

Growth %

Share

Private Total

13032.33

14979.79

14.94

79216.84

93188.83

17.64

34.62

Individual Single Premium

1828.90

2183.38

19.38

11773.82

13987.69

18.80

44.87

Individual Non-Single Premium

6807.74

7884.59

15.82

35388.88

41954.76

18.55

66.04

Group Single Premium

3807.78

4245.14

11.49

27071.87

30717.89

13.47

18.81

Group Non-Single Premium

114.17

9.29

-91.86

275.88

109.80

-60.20

2.57

Group Yearly Renewable Premium

473.74

657.38

38.76

4706.39

6418.68

36.38

92.39

        
LIC of India

11434.13

11858.50

3.71

126015.01

176001.77

39.67

65.38

Individual Single Premium

2072.46

2370.06

14.36

16671.27

17188.98

3.11

55.13

Individual Non-Single Premium

2938.50

3005.13

2.27

19154.58

21571.94

12.62

33.96

Group Single Premium

6017.79

5966.87

-0.85

87331.60

132553.21

51.78

81.19

Group Non-Single Premium

313.20

440.50

40.65

1908.98

4158.92

117.86

97.43

Group Yearly Renewable Premium

92.18

75.94

-17.61

948.59

528.72

-44.26

7.61

        
Grand Total

24466.46

26838.29

9.69

205231.86

269190.61

31.16

100.00

Individual Single Premium

3901.36

4553.44

16.71

28445.08

31176.67

9.60

100.00

Individual Non-Single Premium

9746.24

10889.73

11.73

54543.47

63526.71

16.47

100.00

Group Single Premium

9825.58

10212.01

3.93

114403.47

163271.10

42.72

100.00

Group Non-Single Premium

427.36

449.79

5.25

2184.86

4268.73

95.38

100.00

Group Yearly Renewable Premium

565.92

733.32

29.58

5654.98

6947.40

22.85

100.00

Data Source: IRDAI

What are the takeaways? For December, the private sector insurers scored over LIC, although LIC still dominates on a cumulative FY23 basis. LIC does have predominant focus on group policies, which constitute 77.98% of their overall premium flows. Unlike in November 2022 premium growth has been much lower than private insurers and even monthly premium collections of LIC are lower than private players. However, on an overall basis, single premium policies showed positive premium collection growth across categories in December 2022; and this applied to LIC and to private insurers.

Looking at the sum assured numbers for December 2022

Here is sum assured across life insurers for December 2022 and for the first 9 months of fiscal year FY23.

Insurer Category

Dec 2021

Dec 2022

Growth %

Dec-21 YTD

Dec-22 YTD

Growth %

Share

Private Total

522216.26

551527.43

5.61

3332432.05

3999287.68

20.01

84.37

Individual Single Premium

2628.12

2266.26

-13.77

17133.87

15255.70

-10.96

55.17

Individual Non-Single Premium

187876.52

178172.29

-5.17

993571.98

1048182.50

5.50

71.65

Group Single Premium

134873.88

151413.31

12.26

912906.16

1107888.39

21.36

99.92

Group Non-Single Premium

10477.83

6322.21

-39.66

168253.49

121275.75

-27.92

88.11

Group Yearly Renewable Premium

186359.91

213353.35

14.48

1240566.55

1706685.34

37.57

85.21

        
LIC of India

80048.91

80234.45

0.23

699536.69

740646.82

5.88

15.63

Individual Single Premium

1772.39

1749.06

-1.32

13127.78

12394.47

-5.59

44.83

Individual Non-Single Premium

67368.15

62192.52

-7.68

377218.34

414816.92

9.97

28.35

Group Single Premium

163.97

78.08

-52.38

629.83

838.63

33.15

0.08

Group Non-Single Premium

2080.20

1717.08

-17.46

12925.04

16370.07

26.65

11.89

Group Yearly Renewable Premium

8664.22

14497.71

67.33

295635.70

296226.72

0.20

14.79

        
Grand Total

602265.17

631761.88

4.90

4031968.73

4739934.50

17.56

100.00

Individual Single Premium

4400.51

4015.32

-8.75

30261.65

27650.17

-8.63

100.00

Individual Non-Single Premium

255244.67

240364.82

-5.83

1370790.32

1462999.43

6.73

100.00

Group Single Premium

135037.84

151491.39

12.18

913536.00

1108727.02

21.37

100.00

Group Non-Single Premium

12558.03

8039.30

-35.98

181178.53

137645.82

-24.03

100.00

Group Yearly Renewable Premium

195024.12

227851.06

16.83

1536202.24

2002912.06

30.38

100.00

Data Source: IRDAI

When it comes to sum assured, private insurers clearly have an edge in terms of market share at 84.37%. LIC is building on its term policy sales, but it still has a long way to catch up on sum assured rankings due to its focus on endowments and cash backs. The good news is that, LIC saw its sum assured for FY23 grow by 5.88% yoy, although private insurers grew by a much healthier 20.01%.

How private life insurers delivered in December 2022 

In November 2022, the number of private insurers had reduced from 23 to 22, as Exide Life merged into HDFC Life. Out of these private players, the top 8 insurers in the order of December 2022 premium collections were SBI Life, HDFC Life, ICICI Prudential Life, Canara HSBC, Max Life, Bajaj Allianz, Tata AIA Life and Kotak Life. These 8 players accounted for 85.6% of premium collections. This ratio has bounced sharply and could be attributed to the bounce-back in premium income of Canara HSBC Life, Kotak Life, Tata AIA Life and SBI Life. The month of December 2022 has proven that consolidation and a clearer marketing strategy and positioning is helping private insures give LIC a run for its money.

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  • 12 October, 2022 |
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LIC gained market share, private peers struggled in the month.

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