Tata AIG Life Insurance Company Limited (Tata AIG Life) today declared its financial results for the year 2010-11 posting a net profit of Rs 51.79 crore.
Through superior efficiency in its business synergies and processes, Tata AIG Life has not only achieved break even in its 10th year of operations, but has also recorded a growth of 14 per cent in its total premium income during a year that saw the life insurance sector witness many a transformation.
The total premium income for the financial year ended March 2011 stood at Rs 3,985 crore as against Rs 3,494 crore posted during financial year 2009-10. Of this, the new business premium collection stood at for Rs 1,332 crore.
The renewal premium for the same period grew by 22 per cent to Rs 2,653 crore from Rs. 2172 crore in the financial year 2009-10. The Unit Linked Insurance Products accounted for 72 per cent of the new business premium.
During the year, the company reduced its operating expenses to enhance its efficiency to achieve an operating expenses to total premium ratio of 24 per cent against 29 per cent in the previous financial year 2009-10.
Speaking on the company’s results, Mr. Suresh Mahalingam, MD & CEO, Tata AIG Life Insurance Company Ltd. said “Tata AIG Life looks back on a successful fiscal. Our cost optimization strategies and continued focus on persistency of business over the last four quarters resulted in this profitable growth.
To support our future growth plans, we have infused fresh capital of Rs. 33 crores during the fiscal ending 31 March 2011.â€
He further added that, “The company’s total Assets Under Management (AUM) have increased by 34 per cent to Rs 12,658 crore from Rs 9,456 crores in the last fiscal. The paid up capital stands at Rs 1,954 crore.
A solvency margin of 216 per cent was a very positive indicator of the company’s overall financial health.â€
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