LIC improves its performance, still loses market share in April

The corporation collected Rs 3,582 crore premium in April, 2015

After underperforming in 2014-15, state-owned Life Insurance Corporation (LIC) has improved its performance in April by recording 21 per cent growth in premium and 18 per cent higher sales of policies over the corresponding month a year ago.

According to data from Life Insurance Council, an official representative body of life insurance industry, LIC collected Rs 3,582 crore premium in April, 2015 against Rs 2,966 crore in April, 2014 and sold 8,43,235 policies in April, 2015 against 7,14,572 policies in April, 2014.

However, the Corporation has seen further erosion (at 68 per cent in first year premium mobilisation) of its market share in the month, Council data said.

LIC had lost 5 per cent of its market share to 70 per cent in 2014-15 from 75 per cent in 2013-14 and mopped up a total premium of Rs 78,308 crore in FY15, showing a 14 per cent dip against Rs 90,645 crore in FY14, it added.

The Corporation had also taken a big hit in the number of policies sold in 2014-15 as it fell drastically by 42 per cent to 2,01,71,063 in FY15 from 3,45,11,781 in FY14.

The life insurance industry, consisting of 24 insurers, has also shown signs of recovery in April, normally considered as a lean season, by earning 22 per cent higher premium and selling 12 per cent more new policies over the corresponding month a year ago, it said.

In April, 2015, the life insurance industry has mobilised Rs 5,276 crore premium and sold 9,43,114 policies.

All the 23 private players, led by HDFC Life, have increased their premium by 26 per cent to Rs 1,686 crore in April, 2015.

Overall, FY15 was not a productive year for the entire industry as total premium income plummeted by 6 per cent to Rs 1,13,140 crore in FY15 from Rs 1,20,162 crore in FY14.