Page 16 - Insurance Times May 2022

said BNP Paribas-owned brokerage ICICI Pru, HDFC Life, Bajaj Allianz gain market share
Sharekhan. It expects the VNB margin
to remain at 3-8% in the quarter ended in FY22
March 2022. Private sector life insurance companies Bajaj Allianz (BAL), ICICI Prudential
APE is calculated by taking into and HDFC Life gained market share in the fiscal year ended March 2022 even
account both the single premium and as some others like Max Life and SBI Life lost market share in terms of total
regular premium to give a better sum assured.
picture of the growth in premiums. BAL gained 150 basis points, ICICI Prudential 90 basis points (bps) and HDFC
VNB is the profit margin of a life Life gained 80 bps in terms of total sum assured during last fiscal while Max
insurance company and is calculated by Life and SBI Life witnessed a decline of 150bps and 50 bps respectively. One
dividing the new business value by the basis point is 0.01 percentage point.
annualised premium equivalent.
"For individual sum assured, amongst large insurers, Tata AIA and SBI Life
Kotak Life to expand outperformed their private peers as their market share improved 380bps/
70bps YoY to 14.2%/7.5%. HDFC Life/IPRU Life/BALIC reported market share
distribution loss of 80/210/80bps in FY22," said ICICI Securities in a report. Tata AIA is the
Kotak Life Insurance is hopeful that the market leader in overall individual sum assured.
worst of the pain from the pandemic Overall private sector life insurers clocked an 11% year-on-year growth in their
is over and is now working on an total annualised premium equivalent (APE) in March 2022, translating into
expansion strategy.
21% growth in the fiscal ended March 2022. Their sum assured grew 17%
"We will be expanding our distribution YoY in FY22 led by sharp increase in group sum assured (24% YoY) vs individual
footprint and add more branches. In sum assured (3% YoY).
calendar year 2022, we expect about
about 30% growth in our distribution 2021-22 to Rs. 6,142.77 crore against of new business (VNB) grew 33 percent
footprints," said Mahesh Rs. 5,256.51 crore in 2020-21. year on year in 2021-22. The GNI
Balasubramanian, Managing Director, margin expanded to 28 percent and
Kotak Mahindra Life Insurance. He further noted that the life insurance absolute GNI stood at 16 2,163 crore.
industry went through one of its
He, said, the insurer also plans to toughest periods in the last 24 months, The company's 13th month persistence
invest in data analytics and technology especially so in the last 12 months ratio improved to 85.7 percent in 2021-
interfaces. It will be adding more when the second wave of the Covid-19 22 from 84.8 percent in 2020-21. The
partners on the agency side and pandemic struck. solvency ratio for 2021-22 stood at
bancassurance. It is also looking at a 204.5 percent, as against the regulatory
direct to customer digital play. requirement of 150 percent.
ICICI Prudential Q4 net
In terms of products, while the profit surges 189% NS Kannan, Managing Director and
company intends to follow a balanced CEO, ICICI Prudential Life Insurance
approach, but it would like to see the ICICI Prudential Life Insurance reported said, "Despite the disruptions caused by
share of the protection business a 189.5 per cent surge in its net profit the third wave of Covid-19, which
increase. for the fourth quarter of the fiscal impacted productivity in January and
2021-22 at Rs. 184.67 crore compared
"We would like to grow all our February, we were able to
to Rs. 63.78 crore a year ago. For the
businesses in a manner that the quarter ended March 31, 2022, its net demonstrate resilience in our
balance is maintained. If at all one premium income fell 4.4 per cent to Rs. operations. In March, we posted the
area, we would like to increase it is in 11,358.91 crore as against Rs. best ever monthly sales by the
protection because we see an company in any year since inception. "
opportunity. And we believe that India 11,879.28 crore in the corresponding The insurer's claims and benefit
will require more protection. Especially quarter in the previous fiscal. payouts increased by 29.7 percent to
if one is focused on digital, on some of However, for the full fiscal 2021-22, Rs. 29,359 crore in 2021-22 from Rs.
the new age channels protection the private sector life insurer recorded 22,641 crore in 2020-21 primarily on
becomes a very logical product to focus a 21.4 per cent dip in its net profit to account of increase in surrenders and
on," said Balasubramanian. Rs. 754.13 crore from Rs. 960.15 crore withdrawals and death claims. The
Kotak Life registered a growth of 16.86 in 2020-21. company had Covid-19 claims (net of
per cent in new business premium in In a statement, the insurer said its value reinsurance) of Rs. 1,017 crore. T

16 The Insurance Times, May 2022