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Life Insurance Industry reports robust growth, shows healthy signs of coming out of recession

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Life Insurance Industry reports robust growth, shows healthy signs of coming out of recession

Chennai, December 21, 2009: The Indian Life Insurance Industry appears to be coming out of recession if the robust growth in the total premium data in first seven months is any indication. As a matter of fact, the growth momentum is very evident as Life Insurance industry grew 18% in the first 6 months, while in the first seven months the Life Insurance industry has reported a 21 % growth in Total Premium (new business + renewal) - rising to Rs. 1,20,503 crore in the April - October 2009 period from Rs. 99,310 crore in the corresponding period last year.

As per latest data released by Life Insurance Council, the industry body for all the life insurance companies in India, renewal premiums increased by around 24% to Rs.73,952 cr. compared to same period last year, while new business premiums increased by around 18% year-on-year to Rs. 46,551 cr.

Total renewal premiums for regular Unit Linked Insurance Plans (ULIPs) witnessed a growth of 42% to Rs.29,738 cr. y-o-y as compared to Rs.20,878 cr. in the same period last year. While non-linked premium stood at Rs. 44,214 cr., up from Rs.38,897 cr. last year an increase of 14% y-o-y.

Total non-linked premiums has increased by 27% to Rs. 67,685 cr., up from Rs. 53,215 cr. last year, whereas total linked premiums rose by 15% to Rs.52,818 cr., from Rs.46,094 cr.

"The growth in the industry is propelled by low commission single premium policies. For the April-October period, single premium policies witnessed a surge of around 42%, with investors preferring non-linked policies signifying a clear trend towards traditional policies," said Mr. S. B. Mathur, Secretary General, Life Insurance Council said while disclosing the cumulative data for the seven month period ended October 2009. The Life Insurance Council, the industry body for all the life insurance companies in India, shares quarterly data for 22 Life insurance firms including public sector Life Insurance Corporation (LIC), as a part of making the process of sharing information more transparent and efficient.

Total benefit paid to policyholders was Rs.34,021 cr. an increase of over 25% as compared to Rs.27,179 cr. last year. Private life companies paid total benefits of Rs.6,996 cr. an increase of over 101% from Rs.3,469 cr. last year.

Life Insurance companies have more than 11,890 branches of which whopping 8,729 branches were set-up by private sector life insurance companies.

The number of agents employed stood at 29,94,856 as of October 2009 compared to 27,64,528.

The capital deployed at Rs. 26,734 cr. by life insurance companies has seen almost 25% jump from Rs. 21,498 cr. last year.

About Life Insurance Council - Life Insurance Council is a statutory body under the Insurance Act 1938 and the Council is the industry association representing 22 life insurance companies operating in India. Since nationalization of life insurance industry in 1956 there was no felt role for the Council. On the opening up of the sector the Council was revived through an order from the IRDA.

Council's mission is to play a significant and complementary role in transforming India's life insurance industry into a vibrant, trustworthy and strong sector contributing to the overall development of the economy.

Life Insurance Council's web site can be accessed at www.lifeinscouncil.org

For further information, please contact:

Sampark Public Relations Pvt. Ltd.
Murugan.G
98412 78904