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Led by state-owned LIC, new business for the life insurance industry recorded a growth of 25 per cent during 2009-10, overcoming the decline witnessed a year ago on account of the global financial meltdown.
According to industry sources, the 23 life insurers mopped up a first year premium of Rs 1.09 trillion in 2009-10 compared to Rs 871.08 billion (Rs 87,108 crore) in the previous year.
In 2008-09, the insurers registered a degrowth of 6 per cent. In 2009-10, Life Insurance Corporation collected a premium of Rs 708.91 billion (Rs 70,891 crore) compared to Rs 529.54 billion (Rs 52,954 crore) in 2008-09, thereby growing by around 34 per cent during the year.
The market share of LIC has also increased to 65 per cent in 2009-10 compared to around 61 per cent in the previous year. The other 22 private insurers mopped up a first year premium of Rs 383.99 billion (Rs 38,399 crore) in FY2010, compared to Rs 341.54 billion (Rs 34,154 crore) during the previous year, translating into a growth of over 12 per cent.
Among private life insurers, SBI Life emerged as the biggest player. The insurer collected Rs 70.41 billion (Rs 7,041 crore) as first year premium in the last fiscal compared to Rs 53.86 billion (Rs 5,386 crore) in 2008-09, thereby growing by over 30 per cent.
However, ICICI Prudential, which was at the top position in 2008-09, registered a 7 per cent degrowth during 2009-10. It managed to mop up a Rs 63.34 billion (Rs 6,334 crore) premium in the last fiscal as against Rs 68.13 (Rs 6,813 crore) in 2008-09.
Among other big players, Reliance Life collected Rs 39.21 billion (Rs 3,921 crore) as first year premium in 2009-10, compared to Rs 35.41 billion (Rs 3,541 crore) in the previous year, thereby growing by over 10 per cent.