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Monday, February 04, 2013

Life insurers see 4% growth in premium in Apr-Dec ’12

Life insurance companies have registered a nominal growth of 4 per cent in the first three quarters of financial year 2012-13 (FY13), against the same period of FY12. The total premium collection from the individual segment by 24 life insurers stood at Rs 40,688 crore in April–December 2012 period, compared with Rs 39,131 crore in the same period last year. Public sector insurer Life Insurance Corporation of India (LIC) witnessed a 11.3 per cent growth in the retail segment, with collection of Rs 28,017 crore during April–December 2012, compared with Rs 25,174 crore in the same period last year.

While private sector insurers witnessed a negative growth of 9.2 per cent with the individual premium collection of Rs 12,671 crore during April–December 2012, against Rs 13,957 crore in the corresponding period last year. Among the private sector insurers, ICICI Prudential Life Insurance collected highest premium of Rs 2,133 crore in April–December 2012 period, against Rs 2,009 crore in the corresponding period last year, with growth of 6.2 per cent. HDFC Standard Life collected premium of Rs 2,015 crore during April – December 2012, against Rs 1,820 crore in the corresponding period last year, registering growth of 10.7 per cent.

Although SBI Life Insurance stood third among private sector insurers with a collection of Rs 1,694 crore during April–December 2012, they witnessed a negative growth of 19 per cent over previous years’ collection of Rs 2,091 crore. Max Life Insurance registered a marginal drop of 1.6 per cent with premium collection from the retail segment of Rs 1,159 crore, compared with Rs 1,178 crore in the corresponding period of FY12. “Earlier this financial year, norms had been changed for traditional products and some insurers had to modify their products according to new tax regulations.

Moreover, we have also seen decrease in domestic saving coming into financial instruments over the past two years,” said Rajesh Sud, chief executive officer and managing director of Max Life Insurance. In regular premium policies, insurers have registered a 8.2 per cent growth, with collections of Rs 30,170 crore during April–December 2012, against Rs 27,893 crore in the corresponding period last year. LIC collected Rs 19,123 crore during April–December 2012, compared with Rs 17,142 crore in the corresponding period last year, witnessing a growth of 11.6 per cent.

ICICI Prudential collected Rs 2,057 crore during April–December 2012, compared with Rs 1,812 crore in the corresponding period last year, registering a growth of 13.5 per cent. Total premium collection from single premium policies stood at Rs 10,518 crore during April– December 2012, against Rs 11,238 crore in the corresponding period last year, registering a negative growth of 6.4 per cent. LIC collected single premium of Rs 8,894 crore in April–December 2012 period, against Rs 8,032 crore in the same period previous year, witnessing a growth of 10.7 per cent. Private insurers registered a negative growth of 49.3 per cent, with collection of Rs 1,625 crore during April–December 2012 period, against Rs 3,206 crore in the corresponding period last year.
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