LIC logs 40% growth till Dec

The country's largest insurer Life Insurance Corporation (LIC) of India grew business by 40 per cent fuelling 51 per cent growth in the life insurance sector in the first three quarters of 2005-06 aided by a strong performance from private players.

Competition has intensified between LIC and private players, who have increased their market share, as 14 insurers together collected Rs 19,893 crore in the first nine-months of this fiscal compared with Rs 13,153 crore in the year-ago period, according to data compiled by the regulator Insurance Regulatory and Development Authority (Irda).

LIC recorded a handsome 40 per cent growth in premium income at Rs 14,469 crore in April-December this financial year by selling 1.56 crore policies compared with premium income Rs 10,315 crore in the same period last fiscal.

Despite strong growth in the first-year premium, LIC conceded more ground to private insurers in terms of market share which stood at 72.73 per cent from 73.91 per cent a month back.

However, LIC is not bothered about market share as it is registering strong growth in business due to the continued expansion of the life insurance market in the country.

The 13 private players increased their market pie to 27.27 per cent with SBI Life containing the decline in business while Birla Sunlife continues to see the decline.

The private players together collected Rs 5,424 crore in premium till December as against Rs 2,837 crore in the year-ago period, a growth of 91 per cent.

ICICI Prudential was at the top among private insurers by collecting about Rs 1,429 crore by logging 73 per cent growth, closely followed by Bajaj Allianz which grew by a massive 301 per cent to mop up Rs 1,367 crore in premium income.

ICICI Prudential had a market share of 7.19 per cent while Bajaj Allianz had 6.87 per cent of the market.

HDFC Standard Life had a market pie of 3.01 per cent, followed by Birla Sunlife (1.82 per cent), Tata AIG (1.69 per cent), SBI Life (1.64 per cent), Max New York Life (1.42 per cent) and Aviva (1.08 per cent).

Other players "" Kotak Mahindra Old Mutual, ING Vysya, AMP Sanmar (Reliance Life), Met Life and Sahara Life "" each had less than one per cent of the market.