There are some changes happening in the life insurance industry! Some leadership positions are changing hands.

The coming in of a new Managing Director in Hdfc Standard Life Insurance has had its impact perhaps…or it is just the old favorite Hdfc Bank pushing its sales force and getting some rocking numbers for Feb and March? Clearly Hdfc standard life and SBI life have improved their market share even in a sluggish market. The impact of this growth is a good omen for Hdfc which will have to pay for less losses. However the way the life insurance industry accounts for new business – it might increase the losses as business increases.

Growth sluggish: In February 2010, industry WNRP grew 4% MoM helped by a strong 8% MoM growth for LIC. For
private players WNRP remained flat MoM. In January 2010, WNRP declined ~25% (~30% for private players) MoM.

LIC reported WNRP growth of 41% and private players reported WNRP growth of 16% YoY. HDFC Standard Life growth is strong at 48% YoY and other large private players grew 7-25%. Birla Sunlife Insurance, Max Life and Om Kotak Life Insurance WNRP declined 7-25%. ICICI Prudential Life Insurance grew just 7% YoY.

YTD basis, for the industry, WNRP grew ~13% due to a strong ~25% growth in LIC. YTD private players grew just 4%. Among the large private players SBI Life is the only large player to report strong 35%+ YoY growth, whereas, for others it has been +10% to -20%.

LIC, HDFC Standard Life, Reliance Life gain market share: LIC’s market share improved to 48.9% from 47.3% in January 2010. Among private players (PP) HDFC Standard Life Insurance and Reliance Life gained market share of 100bp and 330bp respectively MoM. On a YTD basis, LIC’s market share improved to ~47.3% v/s 44% in FY09.

ICICI Prudential Life Insurance and Bajaj Allianz Life Insurance market share declined to 17.7% v/s 19.3% a year earlier, and to 11.1% v/s 13.9% a year earlier, respectively. SBI Life’s market share improved sharply to 14.4% v/s 11.3% a year earlier.

Wnrp: weighted new recd premium