Kotak Mahindra Old Mutual Life Insurance Limited (Kotak Life Insurance) today announced a record profit growth of 42 per cent. Profit after tax for FY 2010-11 stood at Rs. 101 crores, up from Rs. 71 crores the previous year. The company has declared bonuses in respect of participating policies with an accumulation fund, resulting in total returns for the year ended 31st March 2011 of 8% for annuity policies and 7% for all other policies. A reversionary bonus of 2% has also been declared on products eligible for reversionary bonus. These bonus declarations resulted in the value of policyholders’ benefits increasing by Rs. 26 crores, an increase of 30% over the previous year.
FY 2010-11 is the third consecutive year the company has declared profit.
Commenting on the performance, Mr. Pankaj Desai, Managing Director, Kotak Life Insurance said, “As the Insurance industry enters into the next phase of consolidation, our focus clearly is on efficient management of capital, driving efficiency at the distribution level, cost consciousness and quality in customer service.
We are happy to have posted good growth despite the uncertainty the sector witnessed the previous year and this can be attributed to our strong sales force, innovative new products and strong relationships with intermediaries.â€
Key Highlights:
Capital remained constant at Rs. 562 crores. There was no capital infusion in 2010-11.
Gross Total Premium Received has grown to Rs. 2,975 crores, of which new business premium accounted for Rs. 1,253 crores and renewal premium accounted for Rs. 1,722 crores
Achieved 317% growth in coverage of Social lives as against previous year. Covered 5,47,321 customers against a statutory requirement of 55,000
Total Assets under Management have grown by 28% to Rs 8,592.28 crores.
Sum Assured increased by 42 % to Rs 1,29,900 crores
Covered 37.4 lakh lives as on 31st March 2011 an increase of 40% over the previous year
Operating Expense ratio has reduced to 19% as against 20% in previous year
