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Monday, August 02, 2010

First year premium collection of life insurers surge 76.5% in April-June 2010

LIC's market share jumps to 73.4% during April-June 2010 from 62.4% in April-June 2009 

The first year premium collection of the life insurance sector doubled to Rs 11556.14 crore in June 2010 compared to Rs 5802.3 crore collections in June 2010. During Quarter June 2010, the premium collection surged 76.5% to Rs 25522.2 crore as against Rs 14456.3 crore in the corresponding period previous year. The sector has recorded robust growth above 60% for fourth sequential month. 

The growth of the premium collection in the life insurance segment was largely driven by Life Insurance Corporation of India, who recorded sharp 135.7% increase in premium collection to Rs 8657.6 crore in June 2010, while its premium collection more than doubled to Rs 18740.4 crore in April-June 2010 compared to Rs 9028.7 crore in the same period last financial year.
With the strong growth in premium income, LIC has boosted its market share in terms of new premium collection to 73.4% during April-June 2010 compared to 62.4% in April-June 2009.

The new premium collection of 22 private life insurers together increased 36.2% to Rs 2898.57 crore in June 2010, compared to 25.2% drop recorded in June 2009. Their premium collection rose 24.9% to Rs 6781.8 crore in April-June 2010 compared to 20.1% fall in April-June 2009. The private players had recorded fall in premium collection for six sequential months from April 2009 to September 2009. 

Among the private players, the first year premium of ICICI Prudential nearly doubled to Rs 643.1 crore, while that of HDFC standard surged 77.5% to Rs 317.3 crore in June 2010. The premium income of SBI Life and Reliance Life increased 20.6% to Rs 348.4 crore and 17.6% to Rs 287.4 crore, respectively in June 2010. But, the Bajaj Allianz Life witnessed 3.2% drop in premium income to Rs 229.1 crore in June 2010. These top five private players accounts for more than 60% of the private life insurer's premium collection. 

The new premium income of Birla SunLife increased 14.2% to Rs 225.9 crore, while Max New York and Tata AIG recorded a healthy growth in premium income at 19.9% to Rs 188.2 crore and 26.4% to Rs 98.7 crore in June 2010. The first premium income of Kotak Mahindra Old Mutual life and Canara HSBC OBC Life surged 66.4% to Rs 110.1 crore and 39.8% to Rs 63.4 crore, respectively. 

Aviva Life recorded 16.6% increase in new premium income to Rs 64.3 crore, but MetLife and IDBI Fortis witnessed 42.2% and 8.1% drop in premium income to Rs 43.8 crore and Rs 26.3 crore, respectively during June 2010. New premium income of ING Vysya increased 10.6% to Rs 53.7 crore, while that of Future Generali rose mere 4.0% to Rs 28.4 crore in June 2010.

Private players like Star Union Dai-ichi Life, Shriram Life, Aegon Religare, and DLF Pramerica Life have recorded a multi-fold increase in new premium collection at 187.2% to Rs 35.8 crore, 102.3% to Rs 43.4 crore, 216.1% Rs 14.9 crore and 176.8% to Rs 6.0 crore, respectively in June 2010. IndiaFirst Life, the youngest life insurer that started operations in November 2009, recorded a fresh premium income of Rs 25.9 crore in June 2010. 

The private players have lost the market share to LIC from 37.55% in April-June 2009 to 26.57% in April-June 2010. The premium collection of ICICI Prudential and HDFC Standard Life surged 74% each in April-June 2010, while maintaining the market share at 5.51% and 2.81%. But, the SBI Life exhibited 9% fall in premium income, while its market share halved to 3.83%. Reliance Life and Tata AIG recorded 19.8% and 18.0% increase in premium collection during April-June 2010, but the market share eased to 2.37% and 0.91%, respectively. Further Bajaj Allianz, Birla Sunlife and Max New York witnessed growth of 4.3%, 7.6% and 5.9%, respectively, but still recorded more than 100 bps fall in market share to 1.98%, 1.95% and 1.63% respectively. Out of 22 private players, about 17 players witnessed fall in market share, while only five newer players exhibited slight improvement in market shares. 

Life insurers sold 91.64 lakh policies in April-June 2010
 
Life insurers have sold 91.94 lakh policies in April-June 2010 compared to 84.55 lakh in same period last year. Meanwhile, the number of life covered more than doubled to 187.37 lakh compared to 89.90 lakh in April-June 2009. LIC sold 66.217 lakh policies, while covered 57.45 lives in April-June 2010. All private players together sold 25.420 lakh policies and covered 129.922 lakh lives during. Among the private players, Reliance Life sold the highest number of policies at 4.94 lakh polices, followed by Birla Sunlife and Bajaj Allianz with 3.628 lakh and 3.493 lakh policies. ICICI Prudential and Max New York sold 3.353 lakh and 2.046 lakh policies, respectively, in April-June 2010. During June 2010, Life insurers sold 37.053 lakh policies, while covered 79.609 lives, representing growth of 1.4% and 119.0%, respectively.
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