Mumbai: Private insurer Tata AIG Life Insurance Company on Monday said it has achieved a break even in the 10th year of operation and posted a net profit of Rs 51.79 crore for the year ended 31 March, 2011.
“Tata AIG Life looks back on a successful fiscal. Our cost optimisation strategies and continued focus on persistency of business over the last four quarters resulted in this profitable growth.
To support our future growth plans, we have infused fresh capital of Rs 33 crore during the fiscal ended 31 March 2011,” Tata AIG MD and CEO Suresh Mahalingam said.
The company’s total Assets Under Management (AUM) have increased by 34% to Rs 12,658 crore from Rs 9,456 crore in the last fiscal, he said.
“The paid-up capital stands at Rs 1,954 crore. A solvency margin of 216% was a very positive indicator of the company’s overall financial health,” he added.
Tata AIG Life’s total premium income grew by 14% to Rs 3,985 crore for the year ended 31 March from Rs 3,494 crore in FY10 due to efficient business synergies and processes, a statement by the insurer said.
Of the total premium, the new business premium collection stood at Rs 1,332 crore and the renewal premium for the same period grew by 22% to Rs 2,653 crore from Rs 2,172 crore in the financial year 2009-10, it said, adding that the unit-linked insurance products accounted for 72% of the new business premium.
During the year, the company also managed to reduce its operating expenses to enhance its efficiency to achieve an operating expenses to a total premium ratio of 24% as against 29% in the previous financial year.