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ANNUAL REPORT 2011-12<br />
I.3.27 Bajaj Allianz reported net profi t of `1,311 crore<br />
for the third consecutive year (`1,057 crore in 2010-11).<br />
SBI Life reported profi t of `556 crore; the insurer<br />
reported profits for 6 out of last 7 years, i.e., other than<br />
in 2008-09. Kotak Mahindra reported profi t of `203<br />
crore for the fourth year in a row (`102 crore in 2010-<br />
11); it reported profi t for the fi rst time in 2008-09. Aviva<br />
reported profi t of `74 crore for the second time a row<br />
(`29 crore in 2010-11). Sahara India had reported a<br />
profit of `29 crore as against a profit of `28 crore during<br />
2010-11. Sahara India had reported profi ts for the fi rst<br />
time in 2007-08. Shriram Life reported net profit of `56<br />
crore (`17 crore in 2010-11). Except, in the year 2009-<br />
10 Shriram Life reported profi ts from 2007-08 for 5<br />
years in a row.<br />
I.3.28 HDFC Standard reported net profi ts of `271<br />
crore for the first time in the current year, after incurring<br />
losses continuously for ten years. Reliance Life<br />
reported net profi ts of `373 crore after remaining in<br />
losses for eight years, the company had exhibited<br />
profi ts in the fi rst two years of its operations. MetLife<br />
reported a profi t of `33 crore, thus reporting profi ts<br />
continuously in the last fi ve fi nancial years. However,<br />
MetLife is carrying deficit in the Policyholders’ Account<br />
from 2007-08 to 2011-12. The cumulative losses of the<br />
company at the end of financial year 2011-12 stood at<br />
`1,646 crore.<br />
I.3.29 The cumulative losses of the life insurance<br />
industry for the financial year 2011-12 stood at `17,945<br />
crore (`20,177 crore in 2010-11). The cumulative<br />
losses reduced by `376 crore and `1,856 crore in the<br />
policyholders account and shareholders account<br />
respectively in the year 2011-12.<br />
Returns to shareholders<br />
I.3.30 For the year 2011-12, LIC paid `1,281 crore as<br />
dividend to Government of India. This is 97.55 per cent<br />
of its net profit reported during the year. This is<br />
consistent with the year 2010-11 when LIC had paid<br />
97.08 per cent of its net profi t as dividend to the<br />
exchequer (`1,138 crore). For the fi rst time after the<br />
opening up of the insurance sector, private life insurers<br />
paid dividends. ICICI Prudential paid `414.37 crore,<br />
Birla Sunlife paid `98.48 crore, Reliance life paid<br />
`47.85 crore and SBI Life paid `50 crore as dividends<br />
during the year.<br />
Expansion of Offices<br />
I.3.31 During the year under review, the decreasing<br />
trend in the number of life insurance offi ces in India<br />
continued. The private insurers closed 768 offices and<br />
opened 305; resulting in a net reduction of 463 offi ces<br />
during the financial year. On the other hand, the public<br />
sector insurer LIC established 92 new offi ces and<br />
closed 8; resulting in a net increase of 84 offi ces. With<br />
this, the number of offices of life insurers went down<br />
from 11,546 as on 31 st March, 2011 to 11,167 as on<br />
31 st March, 2012.<br />
TABLE I.14<br />
NUMBER OF LIFE INSURANCE OFFICES*<br />
(As on 31 st March)<br />
Insurer 2007 2008 2009 2010 2011 2012<br />
Private 3072 6391 8785 8768 8175 7712<br />
LIC 2301 2522 3030 3250 3371 3455<br />
Industry 5373 8913 11815 12018 11546 11167<br />
* Offi ces opened after seeking approval of the Authority<br />
Note: 1) Data collected from life insurers through a special<br />
return.<br />
2) Offi ce as defi ned under Section 64VC of the<br />
Insurance Act, 1938.<br />
3) For similar data for 2001-2006, <strong>IRDA</strong> Annual<br />
Report 2007-08 may be referred.<br />
I.3.32 As can be observed from Table I.15, majority of<br />
the offi ces of life insurers are located either in semi-<br />
TABLE I.15<br />
DISTRIBUTION OF OFFICES* OF LIFE INSURERS<br />
(As on 31 st March, 2012)<br />
Insurer Metro Urban Semiurban<br />
Others<br />
Total<br />
Private 741 1393 3822 1756 7712<br />
LIC 365 563 970 1557 3455<br />
Industry 1106 1956 4792 3313 11167<br />
* Offi ces opened after seeking approval of the Authority.<br />
Note: 1) Data collected from life insurers through a special<br />
return.<br />
2) Based on the HRA classifi cation of places done by<br />
the Ministry of Finance.<br />
Metro : Delhi, Mumbai, Chennai, Kolkata, Hyderabad<br />
Urban<br />
and Bangalore.<br />
: A, B-1 and B-2 class cities of the HRA<br />
classifi cation.<br />
Semi-urban : C class cities of the HRA classifi cation.<br />
Others : Places not listed in the HRA classifi cation.<br />
32
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