Life insurance industry logs 41% growth in FY06

The Life insurance sector grew by 41% in 2005-06 due to better performance of country's largest life insurer, LIC, and private players like Bajaj Allianz and ICICI Prudential.

The 15 Life insurance companies together collected Rs 35,898 crore in the fiscal ended March this year, compared to Rs 25,343 crore in the previous fiscal, according to data compiled by regulator Irda.

Life Insurance Corporation's premium income rose more than 28% to Rs 25,645 crore after it sold 3.16 crore policies as against Rs 19,972 crore collected a year ago.

However, LIC's market share dipped by 6.63% to 71.44% from 78.07% in the year ago period due to stiff competition and aggressive marketing of private life insurers.

The 14 private players were able to steadily increase their market share from 21.93% to 28.56% in a year's time by collecting Rs 10,252 crore during the period under review.