The Hindu Business Line : LIC share in I Year premium income slips below 50%

New Delhi, Nov. 2 For the first time, the market share of Life Insurance Corporation of India, the first year premium income fell below 50 per cent in September to 49 per cent, compared with 79.6 per cent a year ago, and 74.5 per cent in August, according to the data compiled by Insurance Regulatory and Development Authority.

The sharp fall in market share was on account of a 47.4 per cent year-on-year decline in LIC’s first year premium income to Rs 2,555 crore in September.

The 15 private life insurance companies together had a first year premium income of Rs 2,664 crore, up 114 per cent on year during the month. The total first year life insurance premium income in September fell 14.4 per cent on year to Rs 5,219 crore.

Gainers

The biggest gainer was Bajaj Allianz Life Insurance, which overtook ICICI Prudential Life as the company with the highest first year premium income in September among private companies.

Bajaj Allianz’s first year premium income rose 159.2 per cent to Rs 778 crore, while ICICI Prudential’s rose 85.8 per cent to Rs 598 crore.

Bajaj Allianz had a market share of 14.9 per cent in first year premium income in September followed by ICICI Prudential with 11.5 per cent. Last year in September, Bajaj and ICICI had a market share of 4.9 per cent and 5.3 per cent, respectively.

Premium growth

Total first year premium income of all the 16 life insurance companies in April-September, the first half of 2007-08, grew 11.8 per cent to Rs 33,159 crore.

After decades of State monopoly, India opened up the insurance sector for private and foreign investment in 2000. Foreign direct investment in the sector is currently capped at 26 per cent.

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