Expenses of life insurance companies have dropped significantly to 10.14% for the period ending 31st December 2009, compared with 12.24% for the corresponding period last year, according to the data released by the Life Insurance Council (LIC). According to SB Mathur, secretary general, LIC, "The drop in expenses was possible due to effective cost-cutting measures adopted by the life insurance industry, by curtailing operating expenses and rationalising their distribution channels coupled with an increase in the total premium to Rs 164, 353 crore from Rs 131, 382 crore, an increase of 25%".
The renewal premium of the industry increased from Rs 79,168 crore to Rs 96,917 crore, an increase of 22% on a y-o-y basis. In case of ULIPs, the renewal premium increased by 41% to Rs 37, 543 crore from Rs 26, 638 crore. New business premium increased by 29% to Rs 67, 438 crore from Rs 52,215 crore, with private companies also showing a positive growth. Share of linked business in new business has decreased from 61% (Dec 08) to 53% (Dec 09) indicating customers' discomfort towards market volatility and opting hence opting for conventional products. The total infrastructure investment made by life companies stood at Rs 1, 30,009 crore. Equity investment of life companies was in tune of Rs 44, 358 crore for the period Apr-Dec 09.
The renewal premium of the industry increased from Rs 79,168 crore to Rs 96,917 crore, an increase of 22% on a y-o-y basis. In case of ULIPs, the renewal premium increased by 41% to Rs 37, 543 crore from Rs 26, 638 crore. New business premium increased by 29% to Rs 67, 438 crore from Rs 52,215 crore, with private companies also showing a positive growth. Share of linked business in new business has decreased from 61% (Dec 08) to 53% (Dec 09) indicating customers' discomfort towards market volatility and opting hence opting for conventional products. The total infrastructure investment made by life companies stood at Rs 1, 30,009 crore. Equity investment of life companies was in tune of Rs 44, 358 crore for the period Apr-Dec 09.
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