Life Insurance - Strong Volumes, Increase In Number Of Policies Are Surprising Positively: ICICI Securities

ICICI Securities Report

Private insurers’ individual retail annual premium equivalent growth of 21%/13% in August/FY24-to-date and growth in the number of policies (17.5%/9.2% in Aug/FY24-to-date) have started indicating a positive surprise in volumes in FY24, basis five months’ numbers.

However, margin story could be different. As seen in Q1 FY24, margins could be impacted by rising unit linked insurance plan mix led by strong capital markets while rising protection can aid margins.

Noted trends among listed players include:

1. Strong performance by Max Life with total APE growth of 22.7% in FY24TD,

2. strong 41.7% month-on-month growth by HDFC Life Insurance Company Ltd. in August 2023 and

3. two successive strong months for SBI Life Insurance Company Ltd. (reported 19.3% APE growth in FY24TD).

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