After a year of dismal growth, the life insurance industry saw a rebound in business in 2009-10 with a 25 per cent growth in new premium income.

According to data compiled by the Insurance Regulatory and Development Authority, life insurance companies together collected Rs 1,09,290 crore in fresh business premium during the fiscal.

The growth in 2009-10 was led by State-owned Life Insurance Corporation of India, which bettered its previous year's numbers by growing its fresh business by 34 per cent to Rs 70,891 crore.

Private sector players posted a 12 per cent growth in new business and collected Rs 38,399 crore premium.

Among the private players, SBI Life emerged as the leading insurer, in terms of new business. SBI Life collected Rs 7,041 crore in new business premium against Rs 6,334 crore collected by ICICI Prudential in 2009-10.

LIC managed to increase its market share to 65 per cent in FY10 from 61 per cent in FY09.

Of the new business premium collected by the industry, around 50-60 per cent will be from ULIPs, company officials said.

While ULIPs will be around 75-80 per cent of the new business premiums for the private sector players, it could be more than 50 per cent for LIC.

LIC managed to increase its ULIP collections through ‘Wealth Plus', which it launched in February. However, a clearer picture will emerge after companies come out with the detailed break-ups of their premium collections.

In March, the industry grew by 82 per cent. While LIC's new business grew by 83 per cent, private sector players' new business grew by 81 per cent.

Among the private players, most of the players were able to register good growth, with the exception of Birla Sun Life, Max New York and MetLife, who posted negative growth.

Source :- http://www.thehindubusinessline.com/2010/04/23/stories/2010042352310600.htm