At a time when the slowdown-hit life insurance industry was struggling to show signs of revival, data on new business premium collection between April 2008 and February 2009 fails to provide encouraging news.
With just a month’s data in this financial year left to be compiled, the collection in the 11-month period has been quite flat at 0.06 per cent at Rs 72,017.17 crore.
Insurance companies make 40 per cent of their business in the last three months of the financial year. But the insurers have not seen a surge in the premium collection as investors are either holding on to the cash or are deploying it in instruments which offer them better returns in the short-term.
| THE WORLD IS FLAT New business premium collection of life insurance industry (in Rs cr) | |||
| Apr-Feb' 08 | Apr-Feb' 09 | gwth (%) | |
| LIC | 45,725 | 43,883 | -4.03 |
| ICICI Prudential | 6,765 | 5,925 | -12.4 |
| SBI Life | 3,549 | 4,348 | 22.53 |
| Bajaj Allianz | 5,131 | 3,679 | -28.29 |
| Reliance Life | 2,006 | 2,921 | 45.57 |
| HDFC Stand Life | 2,235 | 2,093 | -6.34 |
| Birla Sun Life | 1,436 | 2,210 | 53.91 |
| Kotak Life | 785 | 1,056 | 34.53 |
| Tata AIG | 787 | 902 | 14.68 |
| Met Life | 589 | 917 | 50.13 |
| Aviva | 838 | 612 | -27 |
| Total | 71,971 | 72,017 | 0.06 |
The new premium income of the life insurers turned negative in December after the economic slowdown hit the industry. It was also affected by the slow growth of insurance giant Life Insurance Corporation of India (LIC). LIC’s premium collection fell by 4.73 per cent to Rs 43,884 crore in April-February 2009 against Rs 45,724 crore in April-February 2008.
However, SBI life, Reliance Life, Birla Sun Life, Kotak Old Mutual Insurance and Met Life put up a good show in the April-February premium income collection.
SBI Life has recorded a growth of 22.53 per cent in the new business premium collection. Similarly, Reliance Life recorded a growth of 45.57 per cent, Birla Sun Life posted a growth of 53.91 per cent and Kotak saw an increase of 34.53 per cent in the premium collection.
Mid-sized players have increased their market share by bringing in the right mix of products at the time when unit-linked plans have lost their sheen. Tata AIG posted a growth of 14.68 per cent while Met Life recorded above 50 per cent growth in the premium income.
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The new business premium collection of ICICI Prudential, Bajaj Allianz and HDFC Standard Life turned negative on a year-to- date basis.
ICICI Prudential has tried to capture the market by bringing in returned guaranteed fund (RGF) in three legs. HDFC Standard Life had remained away from the guaranteed return products.
The new business premium for ICICI Prudential fell by 12 per cent, while Bajaj Allianz and HDFC Standard Life saw a drop of 28.29 per cent and 6.34 per cent respectively in the premium collection for April- February 2009.