HDFC Standard Life's premium income grows

Mumbai, May 16: Leading private sector life insurance major HDFC Standard Life has recorded a strong YoY growth of 112 per cent in FY 06, with new business first year premium touching Rs 1,029 crore, stated a release issued here today.

The growth achieved by the company was considerably higher than the private sector industry average of 84 per cent for FY 06, while in terms of effective premium income (EPI), which is an internationally accepted indicator of an insurance company's performance, the EPI grew by 103 per cent from Rs 436 crore to Rs 887 crore.

HDFC Standard Life's growth in new business is a result of number of lives insured as well as an increase in the average premium. For the individual business, volume measured by the number of lives insured witnessed a 32 per cent growth. The average premium also increased by 62 per cent from Rs 17,000 in FY 05 to Rs 27,500 in FY 06.

Contribution to individual business premium income by different channels of distribution also changed significantly, compared to last year with the corporate agency and bancassurance channels growing tremendously. ''It currently accounts for 43 per cent of the company's business,'' stated the release.

HDFC Standard Life's offerings of employee benefit solutions to the corporate sector through group business has also met with increased success with a YoY growth of 174 per cent.

HDFC Standard Life continues to have one of the widest reaches amongst new insurance companies. The company's geographical presence has also increased and covers 169 offices across the country, stated the release.

UNI