Page 18 - Insurance Times December 2023

The total premium income for the Rs15920.13 crore, while the premiums decreased marginally year over year
upcoming quarters is expected to be of private insurers increased by 24.18 but increased in Q2FY24 compared to
Rs. 2.1, a decrease of 10.72% year percent YoY to Rs 11,171.86 crore from Q1FY24), a high sensitivity of
over year. Rs 8,996.45 crore. embedded value to equity volatility,
and a loss of market share as it is
With a 58.5 percent market share, LIC The largest private insurance provider,
outperformed by competitors in the
continued to lead the industry in first- SBI Life Insurance, recorded an
year premium income. The market increase in premiums of 40.06 percent private sector.
share for individual businesses was to Rs 2753.29 crore, while HDFC Life The possibility of another stake sale by
40.35 percent, while for group Insurance experienced a YoY increase the Indian government may also be
businesses it was 70.26 percent. of 13.20 percent to Rs 2188.04 crore. taken into consideration by traders.
At Rs. 3,304 crore, value of new business Max Life Insurance had a growth of Valuations also take these concerns
into account. LIC is trading at a
(VNB) decreased 10.1% year over year. 36.09% to Rs728.78 crore, while ICICI
significant price/EV discount (less than
The net VNB margin remained constant Prudential Life Insurance reported a
1x) versus its competitors in the
at 14.6% from the prior year. YoY gain of 9.95% to Rs 1328.76 crore.
private sector (often 3x or higher).
The concentration on nonpar products, Up till October 2023, LIC reported a YoY
the realignment of product benefits and reduction in premium of 22.71%, from On a sequential basis, growth is strong,
readjustment of margins under nonpar Rs 140111.2 to Rs 108289.77 crore. The but year over year, it is sluggish. In
H1FY24, the group annualized
policies, and the degree of pricing private sector did, however, record a
premium equivalent (APE) decreased
competitiveness in the nonpar segment 15.16% increase during the same
by 24.5% Y-o-Y to Rs. 7,990 crore, while
all contributed to the flat margins. period, reaching Rs 76906.05 crore.
the individual APE remained
Among the private sector businesses, unchanged at Rs. 14,640 crore.
Life insurance companies HDFC Life Insurance reported an Participatory APE decreased by 2%
witness premiums increase increase in premiums of 18.27% to Rs year over year inside the specific firm,
15341.7 crore, while SBI Life Insurance but non-participating APE increased by
by 7.6% had a YoY improvement in premiums 19.8% year over year.
Life Insurers saw a 7.64 percent year- of 26.30% to Rs 19011.42 crore.
over-year (Y-o-Y) increase in new While Max Life Insurance had a growth Par or with-profit policies are those
business premiums (NBPs) for month of of 27.87 percent to Rs 5004.1 crore, that give policyholders an annual
October 23. This increase was dividend payment equal to a portion of
ICICI Prudential Life Insurance the insurance company's profits.
bolstered by a robust increase in
increased by just 2% year over year.
private sector insurers' premiums, In spite of the increase in the share of
which countered the decline recorded non-par business, which is margin-
by the government-owned Life Low value could help LIC positive, the value of new business
Insurance Corporation of India (LIC). in the face of poor (VNB) margin was unchanged year
over year. In H1FY24, the VNB margin
The Life Insurance Council released performance. was 14.61%, compared to 14.58% in
data showing that in October 2023, the Life Insurance Corporation of India H1FY23. Even though the percentage
life insurance market received Rs
(LIC) saw a rise in embedded value (EV) of non-par products increased, the VNB
26,819.01 crore in premiums, 7.64
as a result of the performance of the margin increased as a result of the
percent more than in the same month equities market, notwithstanding its increased benefits provided to
the previous year. lackluster growth through H1FY24. policyholders, especially for annuities,
LIC's premiums decreased by 1.71 However, issues with its stock include which caused the margins to decline
percent to Rs15647.15 crore from sticky operational expenses (which once more.

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The Insurance Times December 2023 17