Page 25 - Life Insurance Today March 2018

OPERATING EXPENSES : LIFE INSURERS Retention Ratio
(Rs. crore) During 2016-17, Rs. 290.68 crore was ceded as reinsurance
premium by LIC (Rs. 218.82 crore in 2015-16). The private
Insurer 2015-16 2016-17 Increase
insurers together ceded Rs. 1502.42 crore (Rs. 1284.31
over
crore in 2015-16) as premium towards reinsurance.
previous
Retention ratio of Life insurers was 99.57% for 2016-17
year (%)
(99.59% for 2015-16).
LIC 22691.83 28952.06 27.59
Private Sector 16086.06 17186.82 6.84 Profits of Life Insurers
TOTAL 38777.89 46138.88 18.98 During the financial year 2016-17, the life insurance
industry reported a profit after tax of Rs. 7727.89 crore as
Benefits Paid against Rs. 7415.43 crore in 2015-16. Out of twenty-four
The life industry paid benefits of Rs. 236339.87 crore in life insurers in operations during 2016-17, eighteen
2016-17 (Rs. 204453.50 crore in 2015-16) which companies reported profits. They are Bajaj Allianz Life, Birla
constitutes 56.48 percent of the gross premium Sun Life, Canara HSBC Life, DHFL Pramerica Life, EXIDE Life,
underwritten (55.72 percent in 2015-16). The benefits paid HDFC Standard Life, ICICI Prudential Life, IDBI Federal Life,
by private insurers was Rs. 69463.00 crore (Rs. 61555.37 India First Life, Kotak Mahindra Life, Max Life, PNB MetLife,
crore in 2015-16) constituting 58.87 percent of the SBI Life, Sahara India Life, Shriram Life, Star Union Dai-Ichi
premium underwritten (61.25 percent in 2015-16). LIC paid Life, Tata AIA Life and LIC of India. LIC of India reported a
benefits of Rs. 166876.88 crore in 2016-17, constituting profit after tax of Rs. 2231.74 crore i.e. a decrease of 11.36
55.53 percent of the premium underwritten (Rs. 142898.13 percent over Rs. 2517.85 crore in 2015-16.
crore in 2015-16, 53.63 percent of the premium
underwritten). The benefits paid on account of surrenders Returns to Shareholders
/ withdrawals increased and stood at Rs. 90005.41 crore, For the year 2016-17, LIC paid Rs. 2200.33 crore (Rs.
of which LIC accounted for Rs. 44924.56 crore and private 2497.03 crore in 2015-16) as dividend to shareholder i.e.
sector Rs. 45080.85 crore. Government of India. Four private life insurers paid
dividends during the financial year 2016-17. HDFC Standard
The comparative previous year statistics were Rs. 80333.74 Life paid Rs. 219.74 crore (Rs. 179.54 crore in 2015-16),
crore, of which LIC accounted for Rs. 37504.33 crore and ICICI Prudential paid Rs. 552.27 crore (Rs. 1202.99 crore in
private sector paid Rs. 42829.41 crore. In the current year, 2015-16), Max Life paid Rs. 140.07 crore (Rs. 364.57 crore
in case of LIC, out of Rs. 44924.56 crore surrenders, ULIP in 2015-16) and SBI Life paid Rs. 150 crore (Rs. 120 crore
policies accounted for Rs. 11094.51 crore (24.70 percent) in 2015-16).
as against Rs. 8960.97 crore, (23.89 percent) in 2015-16.
Death Claims for the year 2016-17
In case of the private insurance industry, the ULIP Individual Life Insurance Business:
surrenders accounted for Rs. 40241.57 crore (89.27
percent) in 2016-17 as against Rs. 37379.49 crore (87.31 In the year 2016-17, the life insurance companies had
percent) in 2015-16. settled 8.60 lakh claims on individual policies, with a total
payout of Rs. 13,850.62 crore. The number of claims
repudiated/rejected was 12,769 for an amount of Rs.
Investment income
657.77 crore.
In the case of LIC, the investment income (Policyholder's
and Shareholder's) including capital gains and other income Claim settlement ratio of LIC was at 98.31 percent as at
was Rs. 192478.14 crore (Rs. 158205.21 crore in 2015-16). 31.03.2017 when compared to 98.33 percent as at
In the case of private insurance industry, the investment 31.03.2016. The repudiations have marginally come down
income including capital gains was at Rs. 69184.14 crore to 0.97 percent in 2016-17 compared to the 0.98 percent
in 2016-17(Rs. 16259.49 crore in 2015-16). in previous year.

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Life Insurance Today March 2018 25