Kotak Mahindra Old Mutual Life Insurance Limited (Kotak Life Insurance) today announced a record profit growth of 42 per cent. Profit after tax for FY 2010-11 stood at Rs. 101 crores, up from Rs. 71 crores the previous year.
The company has declared bonuses in respect of participating policies with an accumulation fund, resulting in total returns for the year ended 31st March 2011 of 8% for annuity policies and 7% for all other policies. A reversionary bonus of 2% has also been declared on products eligible for reversionary bonus. These bonus declarations resulted in the value of policyholders’ benefits increasing by Rs. 26 crores, an increase of 30% over the previous year.
FY 2010-11 is the third consecutive year the company has declared profit.
Commenting on the performance, Mr. Pankaj Desai, Managing Director, Kotak Life Insurance said, “As the Insurance industry enters into the next phase of consolidation, our focus clearly is on efficient management of capital, driving efficiency at the distribution level, cost consciousness and quality in customer service. We are happy to have posted good growth despite the uncertainty the sector witnessed the previous year and this can be attributed to our strong salesforce, innovative new products and strong relationships with intermediaries.”
- Capital remained constant at Rs. 562 crores. There was no capital infusion in 2010-11.
- Gross Total Premium Received has grown to Rs. 2,975 crores, of which new business premium accounted for Rs. 1,253 crores and renewal premium accounted for Rs. 1,722 crores
- Achieved 317% growth in coverage of Social lives as against previous year. Covered 5,47,321 customers against a statutory requirement of 55,000
- Total Assets under Management have grown by 28% to Rs 8,592.28 crores.
- Sum Assured increased by 42 % to Rs 1,29,900 crores
- Covered 37.4 lakh lives as on 31st March 2011 an increase of 40% over the previous year
- Operating Expense ratio has reduced to 19% as against 20% in previous year
ABOUT KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LTD
Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. A Company that combines its international strengths and local advantages to offer its customers a wide range of innovative life insurance products, helping them take important financial decisions at every stage in life and stay financially independent. The company covers over 3 million lives and is one of the fastest growing insurance companies in India. For further information on Kotak Mahindra Old Mutual Life Insurance, please visit www.kotaklifeinsurance.com
ABOUT KOTAK MAHINDRA GROUP
Kotak Mahindra is one of India's leading banking and financial services organizations, offering a wide range of financial services that encompass every sphere of life. From commercial banking, to car finance, to stock broking, to asset management, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporates. The group has a net worth of Rs 10,060 cr. and has a distribution network through branches and franchisees across the country and offices in New York, San Francisco, London, Dubai, Mauritius and Singapore, servicing close to 8 million customer accounts. For further information on Kotak Mahindra Group, please visit www.kotak.com
ABOUT OLD MUTUAL
Old Mutual plc is an international long-term savings, protection and investment Group. Originating in South Africa in 1845, the Group provides life assurance, asset management, banking and general insurance to more than 15 million customers in Europe, the Americas, Africa and Asia. Old Mutual plc is listed on the London Stock Exchange and the Johannesburg Stock Exchange, among others. In the year ended 31 December 2010, the Group reported adjusted operating profit before tax of £1.5 billion (on an IFRS basis) and had £309 billion of funds under management, from core operations. For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com