ICICI Pru is largest pvt insurer in India

ICICI Prudential has pipped SBI Life to regain the top position among private insurance players,garnering new business worth Rs 303 crore as first-year premium in April this year. ICICI Prudential collected Rs 303 crore as first-year premium in the first month of the current fiscal,compared to Rs 135 crore in the corresponding month last year,according …

ICICI Prudential has pipped SBI Life to regain the top position among private insurance players,garnering new business worth Rs 303 crore as first-year premium in April this year.

ICICI Prudential collected Rs 303 crore as first-year premium in the first month of the current fiscal,compared to Rs 135 crore in the corresponding month last year,according to monthly data released by IRDA.

On the other hand,SBI Life,promoted by the country’s largest lender,State Bank of India,earned a first-year premium worth Rs 185 crore compared to Rs 460 crore a year ago.

In 2009-10,SBI Life emerged as the biggest player. The insurer collected Rs 7,041 crore as first-year premium,while ICICI Prudential managed to mop up a Rs 6,334 crore premium in the last fiscal.

Overall,in April this year,the life insurance industry registered a growth of 60 per cent in new business compared to the corresponding month last year.

The 23 life insurers collectively mopped up a first-year premium of Rs 5,746 crore in April against Rs 3,601 crore in the same month of the previous year.

The growth is significant,as there is turf war between market regulator SEBI and insurance watchdog IRDA over regulation of ULIP products,which account for more than half of the total business of life insurance companies.

Story continues below this ad

The difference between SEBI and IRDA arose when the former banned 14 life insurers from raising money from market-linked insurance schemes (ULIPs) in April,following which the latter asked the companies to ignore the order.

Subsequently,the Finance Ministry intervened and the two regulators agreed to jointly seek a legally binding mandate from the court as to who has jurisdiction over ULIPs.

Till then,status quo ante was restored by the Finance Ministry.

After the agreement,SEBI amended its order and banned only new ULIPs launched after April 9,when the first order of SEBI was issued.

Story continues below this ad

In April this year,the largest insurer Life Insurance Corporation’s first year premium stood at Rs 4,173 crore,compared to Rs 2,113 crore in the corresponding month last year,translating into a growth of around 100 per cent.

The market share of LIC has also increased to over 72 per cent during the month,compared to around 58 per cent in the same period of the previous year.

In the first month of the current fiscal,the 22 private insurers together could mop up first-year premium of just Rs 1,572 crore,compared to Rs 1,488 crore in the year-ago,period,translating into a growth of over 5 per cent.