Life insurance sector made Rs 2,657-crore profit in 2010-11
HBL, 29th December 2011
The life insurance industry recorded a premium income of Rs 2,91,605 crore during 2010-11 against Rs 2,65,447 crore in the previous financial year, registering a growth of 9.85 per cent. Out of the 23 life insurers in operations during 2010-11, twelve companies reported profits. The companies include Life Insurance Corporation (LIC), ICICI Prudential, Birla Sunlife, Max New York, Bajaj Allianz, SBI, Kotak Mahindra, TATA AIG, MetLife, Aviva, Sahara India and Shriram.
The country's largest public sector insurer, LIC, reported net profit of Rs 1,172 crore, an increase of 10.47 per cent over Rs 1,061 crore in 2009-10. The largest private sector life insurer ICICI Prudential reported profit of Rs 808 crore for the second year in a row after incurring losses for eight consecutive years.
Birla Sunlife, Max New York and TATA AIG reported profits of Rs 305 crore, Rs 194 crore and Rs 52 crore respectively after incurring losses for nine successive years
LOWER EXPENSES
The increase in expenses was lower than the increase in the gross premium collected by the insurers in 2010-11. As such, the commission expenses ratio (commission expenses as a percentage of premiums) declined marginally to 6.29 per cent in 2010-11 from 6.81 per cent of 2009-10, while the operating expenses of the life insurers increased by 14.04 per cent in 2010-11, compared to 11.84 per cent in 2009-10.
The operating expenses towards life insurance business stood at Rs 32,942 crore in 2010-11 against Rs 28,888 crore in 2009-10.
The cumulative losses of the life insurance industry as at March 31, 2011, stood at Rs 20,569, compared with Rs 20,143 crore in 2009-10.
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