The main reason for industry's lower growth was a 17 per cent drop in Life Insurance Corporation's first premium income. Its new business income shrunk to Rs 4,170.87 crore during April and May of this year as against a first-year premium of Rs 5,049.87 crore in 2007-08.
The 18 private players, however, managed to put up a better show with a 73 per cent rise in first premium income, which was estimated at Rs 3,948.41 crore during April-May of this year compared with Rs 2281.83 crore in the corresponding period last year.
Part of the reason for the rise in premium income is the higher number of private players this year. The growth rate more than doubled from 35.35 per cent in the first two months of the last financial year.
LIC also saw its market share drop to 51.36 per cent in the first two months, while SBI Life Insurance overtook Bajaj Allianz to emerge as the third biggest life insurer. SBI Life Insurance had a first premium income of Rs 546.34 crore as against a first premium of Rs 269.64 crore in the corresponding period.
Similarly, Reliance Life is now the fifth largest insurer with a first premium income of Rs 354.32 crore during April-May this year compared with HDFC Standard Life's Rs 287.9 crore.
