Private insurance players reported soft premium growth in June— individual annual premium equivalent (APE) rose 4% y-o-y with private players growing mere 9% y-o-y (partially due to base effect) and LIC registering a 1% y-o-y dip. This softness was broadly driven by ICICI Prudential Life (down >5% y-o-y, on a high base) and SBI Life (up mere 8% y-o-y); excluding this, private players posted growth of 15% y-o-y (but still below trend). All in all, Q1FY19 growth momentum turned out to be softer at <6% y-o-y with private players posting subdued growth of <5% y-o-y and LIC 7% y-o-y. While the overall growth momentum seems to be moderating (partially due to base effect), we maintain that predisposition towards financial savings will persist and the industry will regain momentum.
Edelweiss MF’s Trideep Bhattacharya: Inflows following earnings growth last longer
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