Private players together records 18.7% drop in premium collection

The first year premium collection of the life insurance sector declined 3.9% to Rs 7346.10 crore in October 2010, after consistent growth for last eight months. The fresh premium collection has increased 49.3% to Rs 69707.92 crore in April-October 2010 as against Rs 46691.14 crore in the corresponding period previous year. The growth of the premium collection moderated sharply from 104.6% during August to 20.1% in September 2010 and tuned negative at 3.9% during October 2010.

The new premium collection of 22 private life insurers together tumbled 18.7% to Rs 2430.28 crore in October 2010. The premium collections of private insurers have increased 17.8% to Rs 19100.9 crore in April-October 2010. The fresh premium collection of LIC increased 5.6% to Rs 4915.82 crore in October 2010 and 66.1% to Rs 50607.02 crore during April-October 2010.

About 15 private life insurers have recorded drop in premium income during October 2010 in the range of 3.9% to 52.4%. Among the private players, the first year premium of ICICI Prudential surged 35.9% to Rs 625.15 crore, but that of SBI Life and Bajaj Allianz tumbled 46.1% to Rs 368.56 crore and 24.4% to Rs 237.04 crore in October 2010. The premium income of Reliance Life and HDFC Standard Life dropped 16.7% to Rs 209.06 crore and 18.6% to Rs 222.51 crore, respectively in October 2010. The first year premium collection of Max New York Life also declined 7.2% to Rs 149.21 crore, while that of Birla Sunlife and Tata AIG tumbled 49.2% to Rs 119.9 crore and 23.6% to Rs 78.39 crore in October 2010.

The new premium income of Kotak Life dipped 48.7% to Rs 50.13 crore, while Aviva Life and Met Life recorded a fall in premium income at 34.0% to Rs 40.98 crore and 52.4% to Rs 34.46 crore in October 2010. The first premium income of Future Generali and Star Union Dai-ichi Life plunged 3.9% to Rs 37.93 crore and 21.1% to Rs 33.07 crore, respectively in October 2010.

Shriram Life recorded 41.9% increase in new premium income to Rs 31.98 crore, while ING Vysya and IDBI Federal witnessed increased in premium collection by 21.2% to Rs 50.0 crore and 50.7% to Rs 30.39 crore, respectively during October 2010. New premium income of Aegon Religare increased 29.7% to Rs 15.91 crore, while that of DLF Pramerica surged 164.4% to Rs 5.44 crore in October 2010.

Private players like Canara HSBC OBC Life, Bharti Axa Life and Sahara Life have recorded a drop in new premium collection at 44.6% to Rs 31.51 crore, 34.5% to Rs 19.69 crore and 53.7% to Rs 4.01 crore, respectively in October 2010. IndiaFirst Life, the youngest life insurer that started operations in November 2009, recorded a fresh premium income of Rs 34.96 crore in October 2010.

Source :- Capital Market