Insurance Newsletter – May 12 to 16, 2014

Finance Minister P Chidambaram has asked public sector insurance companies to increase their market share.

May 17, 2014 2:48 IST | India Infoline News Service
News this week

PSU non-life insurers to improve market share: FM
Finance Minister P Chidambaram has asked public sector insurance companies to increase their market share. Speaking at a meeting with the heads of state-run insurers in New Delhi on Monday, Chidambaram asked them to ensure no further market share was lost and to maintain the current level of 53% and steadily improve the same. The public sector general insurance companies have reported a growth of 10% in gross premium during 2013-14 and projected a growth of 100% in the next five years. Chidambaram stressed the need to study the persistency for ULIP and non-ULIP policies separately, in order to undertake focused efforts for each category... Read more

RBI should spell out list of 'fit & proper' investors
The RBI-constituted committee is headed by PJ Nayak said that the central bank should designate a specific category of investors in banks as Authorised Bank Investors (ABIs), defined to include all funds with diversified investors which are discretionally managed by fund managers and are deemed to be fit and proper. ABIs would therefore include pension funds, provident funds, long-only mutual funds, long-short hedge funds, exchange-traded funds and private equity funds (including sovereign wealth funds) provided they are diversified, discretionally managed and found to be 'fit and proper'. ABIs would exclude all proprietary funds (including those which are hedge funds or set up by corporates), non-banking finance companies and insurance companies... Read more

Max Life records new Business premium growth of 19%
Max Life Insurance, one of the fastest growing Indian life insurance company, announced it Annual Results for the Financial Year ended March 31st 2014. The company continued its profitable growth journey during the Financial Year 2013-14 and has outperformed the private industry to record New Business Premium of Rs. 2,262 crore, growth of  19% over the corresponding period last year.

Max Life Insurance further increased its market share to 10.3%, an increase of 180 bps, amongst private life insurers and maintained its rank as the largest non bank owned life insurer. The Gross Written Premium of the Company grew 10% to Rs. 7,279 crore. During the period Shareholder Profit After Tax grew 3% to Rs. 436 crore... Read more

LIC Nomura MF to grow AUM to Rs. 15,000 crore in FY15
In order to expand its asset base, LIC Nomura Mutual is looking for acquisitions, according to a media report. the acquisition doesn't only aim to increase the assets under management (AUM), but will also look at adding sound investor base, the report added. LIC Nomura Mutual Fund aims to grow its average AUM to Rs 15,000 crore during this fiscal. The AMC had an average AUM of Rs 10,584 crore by the end of last fiscal. LIC Nomura Mutual Fund is a joint venture formed between LIC and Nomura, with LIC holding 65 per cent stake in the joint venture.

Increase in life expectancy to drive insurance need: Tata AIA Life
The life insurance industry in India will witness a significant growth in the future with increase in working population and life expectancy, which are expected to drive insurance need in the country, feels Shivdutt Das, Vice President, Product Development, Tata AIA Life Insurance Company Ltd. (Tata AIA Life).
Das said, The rapid increase in working population will also drive demand for savings and protection products. Insurance products have been the second largest component of household savings with 23% share of total household savings for the financial year 2011-12.
According to an industry estimate*, by the year 2020 more than 100 million people will be added to Indias working force. The total size of working populations in India, which stood at 521 million in 2011, is estimated to grow to 627 million by 2020. Life expectancy, which stood at 67 years between the years 2006-10, will reach to 70 years in between 2016-20... Read more 

LIC reports 18% growth in 1st-yr premium in FY14
Life Insurance Corporation of India (LIC) reported a growth of 18% in the first year premium income during 2013-14, against the 11.57 per cent growth recorded by it for the entire year.
LIC's market share in the first year premium income increased to 75.33% in 2013-14 from 71.36% in 2012-13.

DHFL Pramerica Life launches 'Knowledge is the Best Policy'
DHFL Pramerica Life Insurance Co. Ltd. (DPLI) has launched a customer awareness initiative aimed at protecting policyholders interest by empowering them to understand and manage their policies better.

The Knowledge is the Best Policy campaign seeks to educate customers on various matters such as steps to maximize benefits from insurance, how to stay covered through better policy management, and ways to get their service requests and grievances addressed.
According to Mr. Anoop Pabby, MD & CEO, DPLI, At DHFL Pramerica, we are committed to keeping our customers interests at the forefront of whatever we do. We want our customers to derive the maximum benefits from their policies and our awareness campaign aims to guide and help them do so.... Read more

HDFC Life posts Rs. 725.3 crore profit in FY14
HDFC Life, Indias leading long term private life insurance solutions provider has registered a profit of Rs. 725.3 crore in 2013-14. The company recorded 7% growth in total premium, primarily driven by 17% growth in renewal premium and 30% growth in group business. The company has introduced new processes to strengthen the quality of business which impacted growth in individual first year premium. Total premium: Growth of 7% to Rs 12,063 crore from Rs 11,323 crore in 2012-13 largely due to healthy growth in renewal premium and group business... Read more

SBI General registers Rs. 1188 Crore premium during FY14
SBI General Insurance Company Limited (SBI General), the general insurance arm of State Bank of India (SBI), has successfully achieved Premium Income of Rs. 1, 188 Crores during the FY 2013-143, registering an impressive 54% growth.

Sharing the Financial year performance, Bhaskar J Sarma, MD & CEO of SBI General Insurance said, We are satisfied with our growth during the last FY, against the backdrop of Industry slowdown. We emerged as one of the fastest growing players in General Insurance Industry and crossed the Rs.1, 000 Crores mark in just the 4th year of our operations.  We expanded our footprint to over 400 locations pan India through our own Branch Network in 56 locations and presence in another 350+ locations through satellite resources during the last FY... Read more

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