Life insurance cos premium income slips 28%, non-life cos see 22% growth in Q1

The life insurance segment has reported a 28% fall in premium income during the first quarter of 2011 compared with its non-life counterparts which registered a robust 22% growth during the period, according to data compiled by Irda. Growth in premium income for non-life companies during the previous corresponding period was a shade lower at 21%.

The numbers indicated that public sector insurers -New India Assurance, United India Insurance, Oriental Insurance and National Insurance - registered a collective growth of 19% during the quarter against a 22% growth in the previous corresponding period.

In the life insurance sector, LIC witnessed a 29% decline compared with private life insurers' 27% fall. Experts feel the introduction of a host of guidelines for Ulips and the subsequent withdrawal of policies last September are showing their gradual effects on the segment.

Private companies in the non-life segment, including the three standalone health insurers, registered a 27% growth in Q1 against 21% in the previous period. The only company that registered a fall in premium income is Agriculture Insurance of India (-2%). Nevertheless, private companies now command close to 43% of the total market share while public sector companies hold 56%. The rest belongs to Export Guarantee Corporation and Agriculture Insurance of India.