Life insurance grows by 41% in FY06

Life insurance sector in India grew by 41 per cent in 2005-06 due to better performance of country's largest life insurer, LIC, and private players like Bajaj Allianz and ICICI Prudential.

The 15 life insurance companies together collected Rs 35,898 crore (Rs 358.98 billion) in the fiscal ended March this year, compared to Rs 25,343 crore (Rs 253.43 billion) in the previous fiscal, according to data compiled by regulator IRDA.

Life Insurance Corporation's premium income rose more than 28 per cent to Rs 25,645 crore (Rs 256.45 billion) after it sold 3.16 crore (31.6 million) policies as against Rs 19,972 crore (Rs 199.72 billion) collected a year ago.

However, LIC's market share dipped by 6.63 per cent to 71.44 per cent from 78.07 per cent in the year ago period due to stiff competition and aggressive marketing of private life insurers.

The 14 private players were able to steadily increase their market share from 21.93 per cent to 28.56 per cent in a year's time by collecting Rs 10,252 crore (Rs 102.52 billion) during the period under review.