Insurance share price target

In April 2024, private insurers sold 4.6 lakh policies, while LIC sold 8.6 lakh schemes. The first-year premium for private insurers grew by 16.4% YoY to Rs 7,861.1 crore. Meanwhile, LIC's first-year premium increased to Rs 12,383.6 crore, with its market share rising by 14.9 percentage points YoY.

Recommendation & Top Picks

The Gross Written Premium (GWP) grew at an average of 9.3% YoY/ 4.6% QoQ. The YoY growth was slightly lower than our expectation of 10.3% YoY/ 5.6% QoQ growth.

SBI Life, our top pick, continues to dominate peers by way of superior growth and market share gains in Q3FY24; LIC posted a recovery

Private insurers sold 7.6 lakh policies in January 2024, while LIC sold 20.3 lakh schemes. The first-year premium of private insurers grew by 31.6% YoY to Rs 14,639 crore in the same period. While LIC's premium rose YoY to Rs 18,920.8 crore, its market share fell by 150 bps YoY.

In December 2023, private insurers sold around 9.5 lakh policies, with their first-year premium rising 4.1% YoY to Rs 15,599.8 crore.

In contrast, LIC sold 17 lakh schemes, witnessing a 93.8% YoY increase in first-year premiums to Rs 22,981.3 crore. Its market share also increased by 15.4 percentage points YoY.

In November 2023, private insurers sold around 6.6 lakh policies, and their first-year premium declined by 9.3% YoY to Rs 10,360.3 crore. In contrast, LIC sold 13.8 lakh schemes and saw a 32.9% YoY decline in first-year premium to Rs 16,134.6 crore. Its market share also declined by 6.9 percentage points.

Monthly Business Update-November-2023

Insurance: Q2FY24 Review Shift in product mix dampens life insurer margins

Higher demand for ULIPs than non-par plans narrowed VNB margins for private life insurers in H1; LIC bucked the trend