Birla Life clocks Rs 538 crore premium income

Birla Sun Life Insurance (BSLI) exceeded its targets as its board yesterday declared a premium income of Rs 537.5 crore for the year ended March 31, 2004. This takes into account renewal premium income as well as new business income of Rs 478 crore taken on an annualised basis.

The company had targeted new business income of Rs 450 crore for fiscal 2004. The total sum assured rose to Rs 8,900 crore in fiscal 2004 whereby the aggregate business since inception amounts to Rs 15,000 crore.

Rise in premium income in 2003-04 reflects a growth rate of 222 per cent in the third year of operations. "Ninety-five per cent of our premium continues to come through sale of unit-linked plans, said the company's CEO Nani Javeri.

The private sector insurance company, a 74:26 joint venture between the Aditya Birla Group and Canadian-based Sun Life Financial, professes to rank second to ICICI Prudential Life among the private insurance industry players.

The average premium income has risen sizeably to Rs 24,500 from Rs 19,500. However, the average size of a policy (sum assured) has fallen to Rs 2.98 lakh from Rs 3.26 lakh in fiscal 2003. During the year, BSLI paid claims amounting to Rs 3 crore.

"Birla Sun Life Insurance is placed among the top 3 life insurance companies, including LIC, based on annualised premium and is well on track to break even in the sixth year of operations," Javeri said.

The company has sold 1.29 lakh individual life policies, reflecting a 98.5 per cent increase over last year. On the group side, BSLI has seen a 580 per cent increase in the business, with total group premium amounting to Rs 162.5 crore. Of this 60 per cent constituted gratuity funds and 40 per cent superannuation funds.