- Total AUM of Life Companies cross Rs. 15 lakh Crores.
- Life Insurance Industry’s renewal premium collection rises 13% during April – June 2011 to Rs 37,221 crores.
The Indian life industry has reported a healthy 13% rise in renewal premium income to Rs 37,221 crores for April – June 2011 quarter, as compared to Rs 32, 959 crores same period last year, This means increasing number of policy-holders are renewing their respective policies, indicating that the policy-holders are taking an informed decision and are been advised well, resulting in better conservation ratio for the industry.
The total assets held by the Life Insurance industry including Equity and Fixed income assets has witnessed 11.38 % rise crossing Rs 15 Lakh crores landmark to Rs 15, 04,629 crores as compared Rs 13, 50,850 crores last year .The increase in AUM is despite fall in total premium incomes which declined marginally by 5.18 % y-o-y from Rs.58, 559 crores to Rs. 55,523 crores for Q1.
The de- growth in total premium is due to 28% decrease in new business premium that is from Rs. 25,522 crores last year to Rs. 18,282 crores till 30th June 2011 with the share of non-linked premium in total new premium increasing from 45 % to 73 %.
It is to be noted that last year life insurers had registered an extraordinary growth in the initial five months of 2010 (Apr-August 2010) in anticipation of changing unit linked guidelines from 01st September 2010.
If you consider the new business premium collected in last two years for the same period, the industry’s premium collection has grown at 13 % CAGR despite a fall this year.
However a recovery in new business premium collection is indicated for the month of July 2011.
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The industry’s death benefits pay out to the kin’s of the policyholders, stood at Rs 2,459 crores during the quarter, as compared to Rs 2,277 crores last April–June 2010.
Life companies have also continued with their austerity drive and professionalizing of its agency workforce. The number of agents at the end of Q1 stood at 24.27 lakh as compared to 28.16 lakh last year.
The operating expenses of the industry has decreased to 10.35 % to Rs 5,752 crores as compared to Rs 6,114 crores last year.
The life Insurance industry’s contribution to infrastructure development continues to be robust, despite economic slowdown. The investment in Infrastructure has risen to Rs.2, 00,235 crores as compared to Rs 1, 42,445 cr.