April-May sees substantial dip in life insurance premia collection

The first-year premium collection by life insurance companies fell 12.3 per cent in April-May compared to the corresponding period last year. According to the Insurance Regulatory and Development Authority, during the first two months of the financial year, the 23 life insurers collected Rs 12,253 crore by writing new policies, as against Rs 13,967 crore a year before.

In the same period, for the country's largest company in the segment, Life Insurance Corporation of India, the premium collection fell eight per cent to Rs 9,273 crore from Rs 10,083 crore. For its private peers, the premium collection was lower by 23 per cent to Rs 2,980 crore compared to Rs 3,884 crore collected a year before.

However, compared to April, the premium collection for the industry was higher by 42 per cent, to Rs 7,190 crore. In April, the industry collected a premium of Rs 5,063 crore.
 

MIXED BAG
	April-May		Growth (%)
	2010-11	2011-12
LIFE INSURANCE COS
LIC	10,082.85	9,273.08	-8.03
Private	3,883.76	2,980.36	-23.20
Total	13,966.61	12,253.44	-12.27
NON-LIFE INSURANCE COS
Public sector	4,617.59	5,420.40	17.39
Private	3,251.46	4,200.39	29.18
Total	7,869.05	9,620.79	22.26
Source: Irda                                                                         (in Rs crore)

SBI Life pipped ICICI Prudential Life as the largest private life insurer in terms of new business premium income. It collected premiums worth Rs 591 crore during the first two months of 2011-12. In the same period, ICICI Prudential Life collected Rs 542 crore by writing new policies.

During 2010-11, the life insurance industry collected Rs 1,25,826 crore by selling new policies, up 15 per cent compared to Rs 1,09,290 crore collected in the corresponding period a year before. This was the lowest growth rate since 2002, when industry sales were down 14 per cent.

GENERAL INSURANCE UP
The gross written premium of the general insurance industry grew 22.3 per cent during the first two months of 2011-12 compared to the year before. According to data collated by insurers, the industry collected Rs 9,621 crore by writing new policies during April-May, as against Rs 7,869 crore last year.

While private insurers registered growth of 29 per cent to Rs 4,200 crore, the four state-owned general insurance companies' collection was higher by 17.4 per cent to Rs 5,420 crore. During May, the industry recorded growth of 27 per cent by writing new policies at Rs 4,004 crore, compared to Rs 3,151 crore reported in the same period a year before.

Government-owned New India Assurance India Ltd, the largest general insurer in the country, collected Rs 1,579 crore by writing new policies during 2011-12, up 15.2 per cent. In the same period, ICICI Lombard, largest among the private players, saw a 25.7 per cent growth in writing of new policies, to Rs 916 crore.