SBI, Reliance witness steep decline in life insurance premium
The life insurance industry witnessed a drop of six percent in premium collection during the 2012-13 fiscal, with large private sector insurers like SBI Life and Reliance Life recording a steep fall in premium income.
New Delhi: The life insurance industry witnessed a drop of six percent in premium collection during the 2012-13 fiscal, with large private sector insurers like SBI Life and Reliance Life recording a steep fall in premium income.
Total premium collected during the April-March period of 2012-13 fiscal by the industry, comprising 24 players, stood at Rs 1,07,011 crore, down 6 percent over the same period previous year, data released by regulator IRDA showed.
Among the seven large private sector insurance companies with premium income of over Rs 1,000 crore, SBI Life's premium income fell by 20 percent to Rs 5,184 crore during April- March, 2012-13.
Reliance Life Insurance saw its premium income dip to Rs 1,376.58 crore during the fiscal, down by 23.92 percent.
India's largest life insurer LIC reported a 6.4 percent drop in its premium collection at Rs 76,246 crore during the period as against Rs 81,515 crore collected in 2011-12.
Among other major private players -- ICICI Prudential and Birla Sunlife saw premium income dropping by 5.2 percent and 4.6 percent, respectively, during the period under review.
However, HDFC Standard Life and Bajaj Allianz bucked the industry trend registering a growth of 15.7 percent and 10.2 percent respectively.
ICICI Prudential collected a premium of Rs 4,809 crore, followed by HDFC Standard at Rs 4,435 crore and Bajaj Allianz at Rs 2,992 crore, during 2012-13 fiscal.
Another private sector player, Max Life, saw a meagre 0.4 percent drop in premium income at Rs 1,899 crore.
Private insurers together netted Rs 30,765 crore in 2012-13 as against Rs 32,718 crore in the corresponding period of 2011-12, showing a decline of 6.3 percent.
Life insurance companies collect premium under four segments -- individual single, individual non-single, group single and group non-single.