LIC’s new business premium grew 37 per cent compared 6 per cent growth witnessed by private sector
Mumbai: The new business income of the life insurance industry witnessed a moderate growth of 6.5 per cent with Rs. 8,301 crore premium collection in January 2011 as compared to Rs. 7,789 crore in the previous year, according to the monthly sales data by IRDA.
The 23 life insurers in the country mopped up Rs. 95,000 crore in the first year premiums during April-January 2011 period which grew 26 per cent from Rs. 75,347 crore for the same period a year ago. However, insurance behemoth LIC’s new business premium grew faster compared to its private peers.
Source: IRDA
The first year premium of 22 private life insurers grew only 5.84 per cent to Rs. 27,864 crore in April-January 2011. However the first year premium of lone public sector company, Life insurance Corporation advanced 37 per cent to Rs. 67,135 crore.
34 per cent of LIC’s premium comes from individual single premium category which is considered as more stable business whereas private players are more exposed to the risk of maintain high persistency ratio as their stable business revenues accounts for only 18 per cent out of total Rs. 27,864 crore premium.
Among the private players SBI life insurance collected the largest first year premium of Rs. 576 crore followed by ICICI Prudential and HDFC Standard garnered Rs. 546 crore and Rs. 353 crore respectively.
Life Insurance Corporation new business premium income growth rate - segment wise
New business premium income 3Q 2010 3Q 2009 NonLinked Life 17.15% 40.54% Pension 77.06% 376.23% Group 67.99% 77.84% Linked Life 385.10% -66.35% Pension -8.56% 105.78% Group -82.65% 33.10%