Page 13 - Insurance Times June 2019

Private Life Insurance

Aegon Life ties up with SBI Life as a top pick among brokerages
A strong growth has been posted by private sector companies in the insurance
MobiKwik for Rs. 20 digi-
industry in March with annual premium equivalent
tal insurance product growing 19 per cent from a year ago. This indicates
Aegon Life Insurance and MobiKwik a stable growth trend while reaffirms that the struc-
joined hands tural trend of a market share that shift towards pri-
for a Rs. 20 vate players remains intact.
digital insur-
"The 19 per cent growth for private insurers came off
ance product.
reasonable base growth of 7 per cent year-on-year in March 2018 and indicates
The Aegon Life
a stable growth trend for the last 3-4 months now in spite of market volatility,"
Group Term Plus Plan, which is avail-
said Nomura.
able only on the MobiKwik App, will
Due to rising market share and strength in the protection business, SBI Life In-
offer both death and accidental dis-
surance Company remains a preferred pick for many in the life insurance space.
ability benefits.
"SBI Life has a strong bancassurance partner (parent company SBI) that only
The product will have three variants
sells SBI Life products. Overall, NBP (new business premium) growth for the com-
of different sums assured of Rs. 1
pany has remained strong over the past 2-3 years, with improving market share,"
lakh, Rs. 1.5 lakh and Rs. 2 lakh, as-
said CIMB Securities.
sociated with an additional Rs. 1
lakh, Rs. 1.5 lakh and Rs. 2 lakh of CIMB's top pick in the sector is SBI Life with an add rating and target price of
accident disability. At a premium of Rs 715. SBI Life's shares ended down 2.8 per cent at Rs 599.35 in a subdued
Rs. 20, Rs. 30 and Rs. 40, the policy market. The stock has declined to 16 per cent in the past one year.
can be availed. "SBI Life reported 28 per cent year-on-year growth in new business APE on a
slightly subdued base of March 2018. SBI continues to gain share with 22.5 per
Digital wallet and fintech player
cent share within private insurers in FY19 versus 16 per cent in FY16 and it has
MobiKwik in regard to that has de-
also delivered a big swing in its protection business, warranting a re-rating,"
veloped a completely digital in-app
said Nomura, adding that SBI Life remains its preferred pick in the space.
purchase flow on its application that
will enable the policy to be issued in- For Deutsche Bank, SBI Life and ICICI Prudential are the key picks in the life in-
stantly. surance space while it has a hold rating on HDFC Life. Nomura has a neutral
rating on HDFC Standard Life. It prefers SBI Life in the life insurance space fol-
Vineet Arora, MD and CEO, Aegon
lowed by Max Financial and ICICI Prudential Life.
Life Insurance, said, "Since the pro-
cess is entirely digital, the on board-
SBI Life Insurance net profit up by 20%
ing of the customer happens in a
SBI Life Insurance posted a 20 per cent increase in net profit
couple of minutes with immediate
for the fourth quarter of 2018-19 at Rs. 457.68 crore, against
issuance of the cover. With this part-
Rs. 381.21 crore a year ago. Its total income grew by 55% to
nership, we expect to expand the
Rs. 15,600.97 crore in the quarter ended March 31, 2019,
reach for term insurance solution."
against Rs. 10,052.32 crore in the year-ago period.
The Insurance Times, June 2019 13