New business (APE) growth revives to 12% YoY during Jan‐2016: New business collection for the industry in APE terms grew 12% YoY during Jan 2016. LIC’s new business sales grew 13% YoY while private players reported a growth of 11% YoY (7% YoY decline in Dec‐2015). On YTD basis, new business collection has grown at 7.2% YoY led by 12.9% YoY growth for private players while LIC reported a tepid 2.2% YoY growth during the similar period. On MoM basis the industry reported a decline of 7% MoM led by 9% MoM decline for private players vs 6% MoM decline for LIC.
LIC reports a pick‐up in individual business; market share increases by 68bp MoM to 48.2%: LIC reported 17% YoY growth in individual business vs 1.5% decline for FY16 YTD while private players reported steady 11% YoY growth in the segment (13.1% YTD growth). The growth in group business however remains uniform with both private players and LIC growing at similar rate of 12% on FY16 YTD basis. LIC's market share increased marginally to 48.2% during Jan‐ 16 (51.1% during FY16 YTD) while amongst private players SBI Life, Kotak Life and Tata AIA have gained market share while ICICI Prulife, HDFC Life and SBI Life remains the top three private sector insurers on YTD basis.
LIC’s reliance on single premium remains high: The composition of single premium in total premium income has increased significantly over past one year to 57% (49% in Dec‐2014) led by LIC for which single premium now accounts for 71% of total premium.. This contributed to tepid APE‐premium growth for LIC even as on un‐weighted basis LIC reported 15% YoY growth for FY16 YTD.
Average premium per policy increase for both LIC and private players: Average premium per policy for both LIC and private players increased by 12% YoY and 2% YoY respectively though the share of private in total policy volumes remain low at 24% which is getting compensated by high premium per policy.
Mutual Fund AUM summary: Mutual fund overall AUM remained stable despite ~5% MoM decline in equity AUMs. Overall industry AUMs stand at Rs12.7tn.
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