annual report 2009-10 - IRDA

ANNUAL REPORT 2009-10The status of profits/losses after tax of the private sector non-life companies over the past five years is givenin the Table below:Number of private sector non-life companies according to profit range**Profit/(Loss) (` crore) 2005-06 2006-07 2007-08 2008-09 2009-10> (200) Nil Nil Nil Nil NilLoss (100) - (200) Nil Nil 1 Nil 10 - (100) 1 Nil 3 6 50 - 100 7 8 4 6 5Profit 100 - 200 Nil Nil 2 Nil 2> 200 Nil Nil Nil Nil NilTotal 8 8 10 12 13** Excluding health insurersNON-LIFE INSURANCEI.3.34 As on 31 st March, 2010 there are 23 generalinsurance companies, which have been grantedregistration for carrying out non-life insurance businessin the country. Of these, six are in public sector andthe rest are in private sector. Among the public sectorcompanies, there are two specialised insurancecompanies: one for credit insurance (ECGC) and theother for crop insurance (AIC). Out of the 17 privatesector companies, two have been granted licenceduring 2009-10 (Annex I). The business growth figuresin the following paragraphs excludes specialised andthree standalone health insurance companies.PremiumI.3.35 The non-life insurance industry underwrote atotal premium of `34,620 crore in 2009-10 as against`30,352 crore in 2008-09 (Table 17) registering agrowth of 14.06 per cent as against an increase of9.09 per cent recorded in the previous year. The publicsector insurers exhibited an impressive growth in2009-10 at 14.49 per cent; more than twice theprevious year’s growth rate of 7.12 per cent. Incontrast, the private non-life insurers registered agrowth of 13.44 per cent, which is only marginallyhigher than 12.09 per cent achieved during theprevious year. The figures reflect a comparativehardening of rates in the industry.TABLE 17GROSS DIRECT PREMIUM INCOME IN INDIA :NON-LIFE INSURERS(` crore)Insurer 2008-09 2009-10Public 18030.74 20643.45(7.12) (14.49)Private 12321.09 13977.00(12.09) (13.44)Total 30351.83 34620.45(9.09) (14.06)Note: Figure in brackets indicates growth over previous year(in per cent).I.3.36 The premium underwritten by 13 private sectorinsurers in 2009-10 was `13,977 crore as against`12,321 crore in 2008-09. ICICI Lombard continuedto be the largest private sector non-life insurancecompany, which accounted for a market share of 9.52per cent, although its market share declined from11.21 per cent in 2008-09. Bajaj Allianz, the secondlargest private sector non-life insurance company,which underwrote a total premium of `2,482 crore,also saw its market share depleting from 8.63 per centin 2008-09 to 7.17 per cent during the year underreview. Of the 13 private insurers, 11 reported anincrease in premium underwritten (9 out of 10 in 2008-09). Two of the non-life insurers had started operationsin 2009-10.I.3.37 In the case of public sector non-life insurers,all four companies expanded their business with anincrease in their respective premium collections. Whilethe market shares of Oriental Insurance and UnitedIndia increased in 2009-10 over 2008-09, the shares23