The insurance sector is making a strong comeback. Buoyed by a steep rise in sale of single premium policies, the industry clocked a 53.25 per cent rise in November.
While the rise was driven by the 78.65 per cent increase in Life Insurance Corporation of India’s (LIC’s) first premium income, the private sector, which was seeing a decline in income from sale of new policies, clocked a 16.64 per cent rise in November, the latest data released by the Insurance Regulatory and Development Authority (Irda) today showed.
During November 2009, LIC mopped up first premium income of Rs 5,978.37 crore, as against Rs 3,346.39 crore in the corresponding period last year. Private insurance companies collected Rs 2689. 74 crore during November 2009.
| HIGH INFLOWS New business premium income collection | |||
| Insurers | April-November | % change | |
| 2,008 | 2009 | ||
| LIC | 25,220.62 | 36,449.49 | 44.52 |
| SBI Life | 3,291.98 | 3,524.31 | 7.06 |
| ICICI Prudential | 4,248.25 | 3,031.90 | -28.63 |
| Bajaj Allianz | 2,670.24 | 2,090.21 | -21.72 |
| Reliance Life | 1,950.64 | 1,746.93 | -10.44 |
| HDFC Standard Life | 1,641.68 | 1,607.56 | -2.08 |
| Birla SunLife | 1,528.37 | 1,588.49 | 3.93 |
| Private total | 20,117.49 | 18,907.60 | -6.01 |
| Total | 45,338.10 | 55,357.09 | 22.10 |
| Source: Irda (Figures in Rs cr) | |||
For the eight months up to November, LIC’s growth was 44.5 per cent, while private sector insurers continue to be in red. New premium income of private players fell 6 per cent in the first eight months of the current financial year, though the pace of decline had dropped from the level seen last month. The growth of the entire sector till November was 22 per cent (see table).
While new premium growth of most large private insurers in the first eight months declined, SBI Life Insurance managed to grow at 7 per cent. ICICI Prudential Life registered the steepest fall with its first year premium declining 28.63 per cent, followed by Bajaj Allianz (a fall of 21.72 per cent).
So far this year, growth has been faster than the 15 per cent projected for 2009-10, and with insurance companies predicting a stronger comeback in December and the fourth quarter, the life insurance industry could post a decent growth. During the last financial year, the sector had seen a 6 per cent decline in new premium income.
LIC’s premium growth in the first eight months was mainly driven by a 77.9 per cent surge in group single premium while individual single premium growth was 43.26 per cent.