Birla Sun Life Insurance rides Ulips to timepiece profit
Increased focus on unit linked life insurance
plans has helped Birla Sun Life Insurance Company book net profit for the first
point in 10 years for the quarter ended June 2010.
This happens at a time when the unit-linked
insurance products (Ulips) face many dogmatic hurdles.
For the April-June quarter, the company posted a
net profit of Rs 9 crore beside net loss of Rs 111 crore in equivalent period
previous financial years.
?The company is working on reinforcing the Ulip as
a long term protection cum savings product,? the company said in its release.
The Bachat (Endowment) plan launched in May this
year is garnering positive reply from investors, the release said.
The company has more than 85(%) per cent of the
their portfolio in Ulips, while traditional plans amount to a sub-15(%) per
cent.
While the new business premium saw 7(%) per cent
increase, the renewal premium helped the revenue growth with a 27(%) per cent increase.
The new business premium grew to Rs 473 crore and the renewal grew to Rs 669
crore for the financial year ended March 2010.
The company recorded a growth of 18(%) per cent in
total premium income at Rs 1,143 crore. Assets under management (AUM) of the
company scaled up by 44(%) per cent to Rs 16,841 crore.
The company?s value of new business margin (NBM)
grew from 20.3(%) per cent last year to 22.5(%) per cent this financial year.
The company made the public admission of its fixed value of Rs 3,816 crore as
on March 2010, up 25(%) per cent year on year.
Embedded value is the future value of the present
business (in-force policies) of the life insurance company.
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