42% rise in new business premium helps the industry clock decent growth.

Life Insurance Corporation of India (LIC) helped the insurance industry clock 28 per cent rise in new business premium in July.

Also Read   Related Stories News Now - Dhanalakshmi goes for image makeover - Kishau project may be given to UJVNL - Tehri Hydro Development Corp to set up plant in UP - Tata Tea: On the takeover trail - Spreading darkness - Eliminating distraction

Also Read   Related Stories News Now - Wall Street gains 1% on jobs jump - PEs may hang up on telecom in short-term, post SC vedict - Telenor to write down $721 mn on licences in India - Tata Tele Q3 net loss at Rs 144 cr - Ex-UBS trader refused bail as bank probe deepens More

The growth was mainly driven by the 42 per cent growth reported by insurance giant LIC.

A private sector company executive said, “LIC has benefited from the economic meltdown and the industry has turned positive due to an increase in LIC’s business.”
 

On a year-on-year basis, the industry saw 9 per cent rise in new business premium collection in the first four months of the financial year.

The premium collected so far in the financial year stood at Rs 21,996.56 crore as against Rs 20,178.02 crore in the corresponding period last year. The insurance giant managed 32 per cent growth on a year-on-year basis as against a whopping 17 per cent fall in the first-year collection of private players’.

During the last financial year, LIC’s new business premium had declined by 10 per cent while private players grew their business by 1.03 per cent.

LIC mopped up Rs 14,265.99 crore premium. Of this, group single premium accounted for Rs 5,086 crore in April-July 2009 as against Rs 2381 crore in the corresponding period last year. Similarly, individual single premium rose to Rs 4,083 crore as against Rs 3,433 crore.

The state-owned company increased its market share to 64.85 per cent. DK Mehrotra, managing director of the company, said the growth was mainly due to renewed trust of investors in LIC.

The leading private sector insurer, SBI Life, reported a fall of 4 per cent while ICICI Prudential posted 45.23 per cent decline in the new business premium income collection.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Wall Street gains 1% on jobs jump - PEs may hang up on telecom in short-term, post SC vedict - Telenor to write down $721 mn on licences in India - Tata Tele Q3 net loss at Rs 144 cr - Ex-UBS trader refused bail as bank probe deepens

Tags : LIC. Irda   Read Business news in  Advertisements -  Now property search gets more exciting than ever before! -  Office 365 for professionals and small businesses. -  Financial Learning now made easier and more convenient. -  Buy Your Property with Our Triple Guarantee in India. -  Special moments captured with VIVID clarity. Know more.. -  Improve Patient Care & Experience. Click here to know more -  Are You Serious About Your Future? Click here to know more -  Start Paying with your mobile..know more -  Special moments captured with VIVID clarity. Know more.. -  Win a Business Class Ticket to Europe..Know more.. -  A hassle free reservation with our Best Available Rate. -   Introduce a New Automotive Luxury Car.. know more -  Making lives better through Social Innovation Business..