Insurance share price target

GICRE:We initiate with a BUY and TP of Rs 250 (+9.8%). Our TP implies a FY20/21E P/E of 11.2/9.8x and P/B of 0.83/0.76x for an FY21E RoE of 8.3%.ICICIGI:We initiate with a SELL and TP of Rs 1,040 (-13.6%). Our TP implies a FY20/21E P/E of 34.1/28.3x and P/B of 7.2/6.0x for an FY21E RoE of 22.8%.NIA:We initiate with a NEUTRAL and TP of Rs 116 (+8.2%). Our TP implies a FY20/21E P/E of 13.3/9.5x and P/B of 0.57/0.55x for an FY21E RoE of 6.2%.Visit note:Our FV estimate for BAGIC works out to be Rs 350bn (18% of SOTP) With a penetration level of just 0.9% of GDP, the general insurance (GI) industry has multi-year growth headroom in India. Unlike life, GI is non-discretionary, making it virtually indispensable. But most contracts are annually renewable and switching costs remain low.

higher base last year. Our interactions with industry suggest ULIPs broadly have been unfavorable, while PAR products have seen better growth and also Source: Life Insurance Council, PL...

higher base last year. Our interactions with industry suggest ULIPs broadly have been unfavorable, while PAR products have seen better growth and also Source: Life Insurance Council, PL...

SBI life growth was steady at 24% YoY with strong MoM growth of 25% and sighted continuous increase in ticket size (18% YoY), while Max life Source: Life Insurance Council, PL...

SBI life growth was steady at 24% YoY with strong MoM growth of 25% and sighted continuous increase in ticket size (18% YoY), while Max life Source: Life Insurance Council, PL...

Privates gain market share; HDFC Life picks up: On overall APE basis, LIC gained market share of 420bps YoY to reach ~60% (140bps YTD to 57%) largely driven by high group business growth. Although on individual APE basis, private players gained market share of 520bps YoY to reach ~61%. On back of robust growth HDFC Life has gained a strong 430bps market share to reach second position at 11% (10.2% on YTD basis) and private players gained 600bps YoY to reach 18% market share (17.5% YTD basis). SBI Life retained its top spot with marginal market share gain to reach...

Privates gain market share; HDFC Life picks up: On overall APE basis, LIC gained market share of 420bps YoY to reach ~60% (140bps YTD to 57%) largely driven by high group business growth. Although on individual APE basis, private players gained market share of 520bps YoY to reach ~61%. On back of robust growth HDFC Life has gained a strong 430bps market share to reach second position at 11% (10.2% on YTD basis) and private players gained 600bps YoY to reach 18% market share (17.5% YTD basis). SBI Life retained its top spot with marginal market share gain to reach...

Mid-sized continue to lead growth: From last few months mid-sized players have been seeing strong growth especially from TATA AIA/Birla MF scoring Source: Life Insurance Council, PL from Banca, while Max and Bajaj Life improving its proprietary channel sourcing. Mid-sized have also seen higher growth on back continuous addition to product line in both individual & group segments trying to reach in-line with larger player offerings. ABSLI continued its industry leading growth at 84% YoY, Max Life grew at strong 35% YoY over the base of 64%registered in...

Mid-sized continue to lead growth: From last few months mid-sized players have been seeing strong growth especially from TATA AIA/Birla MF scoring Source: Life Insurance Council, PL from Banca, while Max and Bajaj Life improving its proprietary channel sourcing. Mid-sized have also seen higher growth on back continuous addition to product line in both individual & group segments trying to reach in-line with larger player offerings. ABSLI continued its industry leading growth at 84% YoY, Max Life grew at strong 35% YoY over the base of 64%registered in...

All round improvement for private players: Strong improvement was seen in private players individual APE, growing 14% YoY & 56% MoM, led by Individual APE growth trends for the...