SBI Life Insurance, which has become the largest private sector insurer in terms of new business premium, has posted a net profit of Rs 556 crore in FY’12 which is the rise of 52% on year-on-year basis. ICICI Prudential life insurance has reported increase of 71% in net profit at Rs 1,384 crore in FY’12 as against Rs 808 crore in FY’11. HDFC Life insurance has also reported maiden profit of Rs 271 crore in FY’12.
As per insurers, the back book has started generating sufficient profits to offset the new business strain incurred on writing new policies. They also cited that their consistent focus on cost monitoring and containment and focused efforts on conservation ratio, have helped them in reducing the operating expense ratio over the years.
These are statutory profits as per Indian accounting standards and insurers still have accumulated losses. As of 31 March 2011 the cumulative losses of life insurers stood at Rs 20,569 crore as against Rs 20,143 crore in FY’10.
In FY’11 life insurance industry reported net profit of Rs 2,657 crore as against the net loss of Rs 989 crore in FY’10. Besides Life Insurance Corporation of India (LIC), 11 private companies reported profit in FY’11. They include ICICI Prudential, Bajaj Allianz, Birla Sun Life, Max New York Life, SBI Life, Kotak Mahindra Life, TATA AIG Life, MetLife, Aviva Life, Sahara India Life and Shriram Life.
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