New biz for life insurance grew 25 pct in FY10

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 lakh crore in 2009-10 compared to 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 70,891 crore compared to 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 38,399 crore in FY2010, compared to Rs 34,154 crore during the previous year, translating into a growth of over 12 per cent.
Among private life insurers, SBI (SBIN.NS : 2223.1 +117.3) Life emerged as the biggest player. The insurer collected Rs 7,041 crore as first year premium in the last fiscal compared to Rs 5,386 crore in 2008-09, thereby growing by over 30 per cent.
However, ICICI (ICICIBANK.NS : 943.85 -8.05) 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 6,334 crore premium in the last fiscal as against Rs 6,813 crore in 2008-09.
Among other big players, Reliance Life collected Rs 3,921 crore as first year premium in 2009-10, compared to Rs 3,541 crore in the previous year, thereby growing by over 10 per cent.