Reliance Life new business rises 40% at Rs. 1,934 cr in FY14

India Infoline News Service | Mumbai |

Reliance Life saw its new business premium collection rising to Rs 1,934 crore during by the end of 2013-14

Reliance Life Insurance today said the company has recorded a 40 per cent surge in its new business premium income in the financial year ended March 31, 2014.
Helped by a significant increase in individual insurance segment, Reliance Life saw its new business premium collection rising to Rs 1,934 crore during by the end of 2013-14, from Rs 1,377 crore in the year-ago period.
For the entire life insurance industry, the new business premium income grew by 11.6 per cent to Rs 1.20 lakh crore for the year ended March 2014 from Rs 1.07 crore in the year-ago period, according to the Insurance Regulatory and Development Authority data.
Reliance Life, part of Anil Ambani-led Reliance Group's financial services arm Reliance Capital, registered a rise of 6 per cent in its total premium income, comprising new business and renewal premium collections, to Rs 4,283 crore in the financial year ended March 31, 2014, from Rs 4,045 crore in 2012-13.
“Despite the challenging market conditions, we registered a strong growth of 40 per cent in the new business premium income and posted a substantial 6 per cent rise in our total premium collection in FY14.
The growth has been driven a significant improvement in agent productivity and average ticket size in the last financial year. This led to a profitable growth for the company,” Reliance Life Insurance CEO Anup Rau said in  a statement.
He said the average ticket premium size of Reliance Life improved by 49 per cent year-on-year to over Rs 19,000, while its agent productivity grew by 56 per cent in the last financial year.
Reliance Life posted a profit of Rs 359 crore for the financial year, down from Rs 380 crore in the same period of previous fiscal 2012-13. Notably, the company had surrender profit of Rs 160 crore for 2013-14.
The new business achieved profit (NBAP) margin for the year ended March 31, 2014 rose to 23.8 per cent as against 20.2 per cent for the corresponding previous period.
However, the renewal collection of the company fell to Rs 2,349 in 2013-14 from Rs 2,669 crore in the corresponding period a year ago.
Rau said the company is taking several initiatives ranging from incentive programmes to overall process re-engineering in order to increase its renewals and added: "We expect to see positive results in the current fiscal, as stringent checks are being put in place to push the quality of business.”
The company's total funds under management stood at Rs 18,328 crore as on March 31, 2013, against Rs 18,189 crore in the year-earlier period.
Our focus for the current financial year is to sustain business momentum through continued enhancement in productivity and need-based selling, improve business quality further and enhance service experience,” Rau added.


 

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