New Delhi: Led by state-owned LIC, new business for the life insurance industry recorded a growth of 25% 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 Rs1.09 lakh crore in 2009-10 compared to Rs87,108 crore in the previous year. In 2008-09, the insurers registered a degrowth of 6%.
In 2009-10, Life Insurance Corporation collected a premium of Rs70,891 crore compared to Rs52,954 crore in 2008-09, thereby growing by around 34% during the year. The market share of LIC has also increased to 65% in 2009-10 compared to around 61% in the previous year.
The other 22 private insurers mopped up a first year premium of Rs38,399 crore in FY2010, compared to Rs34,154 crore during the previous year, translating into a growth of over 12%.
Among private life insurers, SBI Life emerged as the biggest player. The insurer collected Rs7,041 crore as first year premium in the last fiscal compared to Rs5,386 crore in 2008-09, thereby growing by over 30%.
However, ICICI Prudential, which was at the top position in 2008-09, registered a 7% degrowth during 2009-10. It managed to mop up a Rs6,334 crore premium in the last fiscal as against Rs6,813 crore in 2008-09.
Among other big players, Reliance Life collected Rs3,921 crore as first year premium in 2009-10, compared to Rs3,541 crore in the previous year, thereby growing by over 10%.