Insurance Monthly Update – March 2010

Indian Life Insurance industry witnessed a strong growth in the farewell month of FY10. The industry total Annual Premium Equivalent (APE) grew by 50.1% yoy in March ’10 vis-à-vis 27.7% yoy in the previous month. This robust growth was equally contributed by both private players and LIC. In March ’10, private players witnessed a strong APE growth of 45.8% yoy vis-à-vis 17.8% yoy in previous month, while state-owned LIC posted a 55% yoy APE jump. March, being a key month for the industry, contributed 23.2% to its annual sales as against 18.8% in the previous year. New premium collection stood at Rs253.3bn compared toRs150.9bn in the last fiscal. Even on a quarterly basis, contribution was greater at 40% of the total sales vis-à-vis 30% in the previous year as investment climate and investor sentiment witnessed a marked recovery.