LIC leaps with its highest premium in March, 2007

Life Insurance Corporation of India has mobilised Rs. 12,361 crore of new business premium in Mrch, 2007 - the highest recorded by the corporation in any single month. This has enabled the corporation post new business premium of Rs. 55,934 crores in 2006-07 a 118% growth over the previous year. LIC's has been the growth driver for the the entire life insurance industry which grew 110.7% to Rs. 75,406 crore in current financial year from Rs. 35,897 during the previous year.

The rise in premium gives LIC a market share of over 74% of the total new business premium mobilised in India, which is substantially higher than the 72% as on March 31, 2006. The rise in premium is mainly on account of unit-linked policies which account for nearly 70% of the total individual premium.

The corporation faces a challenge in growing its business during the current fiscal given the huge base. Also a large portion of the policies are in the nature of single premium policies, which contributed an amount of Rs. 24,927 crore, a nearly 44% of the premium raised by the corporation during the F.Y. 2006-07.

Meanwhile, the private life insurance industry has recorded a growth of 89% with total new business premium of Rs. 19,471 crore as against Rs. 10,252 crore in the corresponding period last year. ICICI Prudential continues to be the largest private life insurance player with a market share of 7% followed by Bajaj Allianz Life Insurance which has a market share of 5.7%.

The comapnies that have recorded fastest growth in the fiscal '06-07 include Reliance Life Insurance, which grew 381%, followed by SBI Life Insurance which grew 209%. The high growth has enabled SBI Life to move into the number three postion after Bajaj Allianz Life Insurance.