Life insurance sector growth normalizing + Valuation

February 24, 2010 · Author: · Category: insurance 

The growth of Indian private life insurers normalised to 14% YoY (-33% MoM) in January 2010, post December 2009, when growth had jumped to 59% YoY, ahead of the withdrawal of noncompliant products from January 2010. The industry APE growth was up 3% YoY (-27% MoM).

ICICI’s market share gains sustained (11.1% currently – up 190 bp over the last six months), whereas Bajaj and HDFC witnessed a sharp rise in this month (+127 bp and +94 bp MoM). SBI continued to be the strongest performer, with 27% YTD APE growth, whereas Kotak was the weakest performer (-21% YTD).

Max India and Reliance Capital, with 113% and 62% of their market cap contributed by insurance business, are the most
credible plays. However, the new business margins that life insurers will report from this quarter (post-introduction of ULIP free cap compliant products) will be key to any stock re-rating.

Valuation of Indian Life Insurance Companies [USD Bn]
ICICI Prudential 4.6
Bajaj Allianz 2.4
Reliance Life 2.3
SBI Life 1.8
HDFC Standard Life 1.75
Max New York – 1.4


3 Responses to “Life insurance sector growth normalizing + Valuation”

  1. k.venkidasamy on December 31st, 2010 08:25

    i am one of the ph.d scoller in bharathiyar university i doing my ph.d title in a study on financial performance of life insurance companies in indis so i need some articles for my thesis thankyoy.

  2. editor on January 7th, 2011 11:54

    I didn’t know bharathiyar university hired students like you. First get good English language lessons and then you can become a Scholar and not scoller.

  3. durai on July 16th, 2011 17:17

    kindly inform the phd procedure of bharathiar university

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