annual report 2009-10 - IRDA

ANNUAL REPORT 2009-10cent in 2008-09). During 2009-10, the growth inrenewal premium was 15.69 per cent (24.91 per centin 2008-09). By comparison, the growth in first yearpremium was higher at 25.84 per cent during2009-10 (negative 6.81 per cent in 2008-09).I.3.6 Further bifurcation of the first year premiumindicates that single premium income received by thelife insurers recorded 31.05 per cent growth during2009-10 (negative 3.34 per cent in 2008-09). Singlepremium products continue to play a major role forLIC as they contributed 24.36 per cent of LIC’s totalpremium income (21.64 per cent in 2008-09). Incomparison, the contribution of single premium incomein total premium income was only 4.84 per cent forprivate insurance companies during 2009-10(5.41 per cent in 2008-09).I.3.7 The contribution of regular premium to the totalpremium stood at 22.87 per cent in 2009-10(22.46 per cent in 2008-09). During 2009-10, theamount of renewal premium received by the lifeinsurance companies had gone up by 15.69 per cent(24.91 per cent during 2008-09). Private insurersreported higher growth of 35.11 per cent in renewalpremium in 2009-10 than 10.03 per cent reported byLIC.I.3.8 Unit-linked products (ULIPs) witnessed 27.44per cent increase in premium income from`90,647 crore in 2008-09 to `1,15,521 crore in2009-10. On the other hand, the growth in premiumincome of traditional products was lower at 14.33 percent, with premium income increasing to`1,49,929 crore as against `1,31,138 crore in2008-09. Accordingly, the share of unit-linked productsin total premium increased to 43.52 per cent in2009-10 as against 40.87 per cent in 2008-09.(Statement No. 10)TABLE 4PREMIUM UNDERWRITTEN BY LIFE INSURERS(` crore)Insurer 2008-09 2009-10Regular premiumLIC 19140.61 26184.48(-27.01) (36.80)Private Sector 30663.04 34529.75(6.97) (12.61)Total 49803.65 60714.23(-9.26) (21.91)Single premiumLIC 34038.47 45337.42(0.78) (33.19)Private Sector 3488.97 3842.37(-30.91) (10.13)Total 37527.44 49179.79(-3.34) (31.05)First Year premiumLIC 53179.08 71521.90(-11.36) (34.49)Private Sector 34152.01 38372.12(1.29) (12.36)Total 87331.09 109894.02(-6.81) (25.84)Renewal premiumLIC 104108.96 114555.41(15.94) (10.03)Private Sector 30345.43 41000.94(70.05) (35.11)Total 134454.39 155556.35(24.91) (15.69)Total premiumLIC 157288.04 186077.31(5.01) (18.30)Private Sector 64497.44 79373.06(25.09) (23.06)Total 221785.48 265450.37(10.15) (19.69)Note: Figure in brackets indicates the growth (in per cent)over the previous years.15