Life insurers' premium incomes almost flat at Rs72,017 crore

03 April 2009

India's life insurance industry recorded almost nil growth with new premium incomes rising at a flat 0.06 per cent in the 11 months ended 28 February, compared with the same period a year earlier.

Total premium collections in the April-February 2008-09 remained almost flat at Rs72,017 crore, up a meager 0.06 per cent from the Rs71,971 crore received in the same period of the previous year, official data showed.

Data provided by the Insurance Regulatory Authority of India (IRDA) on new business premium collection by life insurance companies between April 2008 and February 2009 show negative growth in incomes of major life insurance companies, including Life Insurance Corporation of India (LIC). 

Mid-size companies, however, saw a growth in premium income of over 50 per cent in some cases. 

Hit by the effects of the economic slowdown, LIC, the country's largest insurance company - both by revenue and market cap - saw its new premium incomes fall 4.03 per cent to Rs43,883 crore in the 11 months ended 28 February, compared to Rs45,725 crore during the same period last fiscal.

ICICI Prudential Life reported a12.4 per cent fall in new premium collections at Rs5.925 crore in the 11 months ended February 2009, from Rs6,765 during the same period of the previous fiscal year.