YES SECURITIES on Monthly General Insurance & Mutual Funds Data

SBI General displays standout growth, ICICI Lombard remains weak

- The gross direct premium income (GDPI) for private sector diversified general insurers was up 1.8% MoM and 19.0% YoY.

- Among private sector diversified players, SBI General displayed standout growth of 170% MoM and 96% YoY.

- ICICI Lombard's weakness in revenue growth continued with GDPI down -10.7% MoM and up just 4.3% YoY. We currently have a less than bullish ADD rating.

- HDFC Ergo's growth was reasonably healthy at 40.3% MoM and 19.5% YoY.

- Public sector diversified general insurers de-grew -15.6% MoM but grew 15.8% YoY, dragging down growth for the overall sector on MoM basis.

Net equity flows into mutual funds remain positive albeit declining MoM

- Inflows into Equity Mutual Funds remained positive in August 2021 at Rs 268bn (incl. Hybrid), down -33% QoQ and up compared with a negative figure of Rs -88bn in August 2020. Total Equity AAUM (incl. Hybrid) for August 2021 stood at Rs. 16.4 trn, up 4.0% MoM and 48% YoY.

- Debt-oriented schemes during the month witnessed a net outflow of -Rs.67.4 bn as against an inflow of Rs. 112.2 bn in July 2021. The Total Debt AAUM stood at Rs.10.5 trn, flat MoM and up 19% YoY.

- Net inflow into Liquid Funds tapered off -97% MoM in August 2021, amounting to Rs 13.3bn, with the corresponding figure in August 2020 being negative at - Rs 79bn. Liquid Fund AAUM for the month was at Rs. 5,003 bn, down -7% YoY and up 1% MoM.

- The inflows in Other schemes (ETFs + Index Funds) has also been strong for the month at Rs. 115.9 bn, up 15% MoM and 264% YoY. The Total Other AAUM for the month was Rs.3,939 bn, up 68% YoY and 6% MoM.

- In terms of number of folios, there has been a fall in the debt funds category whereas the other categories have witnessed new folio addition in August 2021. The strong addition of folios in the Equity Funds continues with an addition of 1.9mn in the month of August 2021.

- The SIP inflows continue to rise for the fourth consecutive month. The inflow for the month of August 2021 was Rs.99.2 bn, up by 27% YoY and 3.3% MoM.

- We most prefer Nippon Life India AMC in the asset manager space.

Source : Equity Bulls

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