Robust growth to drive gains for general insurance firms

General insurers have seen robust growth since goods and services tax (GST) reforms.

- DEVANGSHU DATTA

In November, the industry's gross direct premium income (GDPI) rose 24.1 per cent year-on-year (Yo-Y) to ₹26,900 crore. Standalone health insurers (Sahi) reported growth at 35.8 per cent Yo-Y as retail health became GST-exempt and 1/n (spreading the premium over policy period) led to accounting changes. Given improved headline growth, GST support for motor and retail health segments, and moderate valuations, the general insurance space may look attractive.Private multi-line insurers outperformed, reporting GDPI growth of 35.5 per cent Yo-Y while PSU multi-line insurers recorded a marginal decrease of 0.4 per cent Yo-Y. Growth was driven by strong motor sales and crop insurance.

Growth among listed players was led by Bajaj General (up 193.1 per cent), Niva Bupa (up 47.1 per cent), Go Digit (up 20 percent), and Star Health (up 19 per cent). ICICIGI was a moderate performer with 7.4 per cent growth. Even excluding Bajaj General, growth was strong at 15 per cent for private multi-liners.