Private sector player, Aviva Life Insurance has reported a net profit of Rs. 740 million in the financial year ended 31 March2011 against Rs 290 million in FY10-11. This is the second year of declaring profits. Ranked amongst the top 10 private players, Aviva India’s market share increased to 3.2% in FY11-12 from 2.3% in the corresponding period last year,as per IRDA’s report of March 2012.
The new business premium collected by the company stood at Rs 7.62 billion, a growth of 15% (on weighted premium income basis) inFY11-12. This is despite the market conditions and significant challenges faced by the sector which has resulted in de-growth of private players by -18% in the same period. The company continues to maintain a healthy conservation ratio at73% and a solvency ratio of 515%. The gross written premium collected by the company recorded an increase of 3% to Rs. 24.16 billion over the last FY10-11.
TR Ramachandran, CEO & MD, Aviva India said,“The profitability has been as a result of higher productivity and efficiency of our multi-channel distribution model, a strong focus on expenses and a balanced product portfolio with a focus on protection oriented products. While bancassurance is our core competence, we will also continue to invest in a focused, high quality agency force concentrating on customer needs.”
He added, “Given that 65% of India’s population is less than 35 years of age, we will continue with our strategy of targeting young parents. We aspire to further consolidate our position in the child financial planning and protection segments.”