Page 15 - The Insurance Times September 2022

Tata AIA Life declares Rs. LIC, has registered over twofold jump tier-1 bonds, according to people
in new business premium income to Rs spoke with.
861 crore surplus
29,116.68 crore during the month Banks' resources teams are swinging
Tata AIA Life Insurance has declared
compared to Rs 12,030.93 crore in the
to action, after IRDAI breathed life
Rs. 861 crore in annual surplus
year-ago month, according to the
transfers to the participating into the moribund market by easing the
IRDAI data.
policyholders for FY22. conditions for insurers to buy into these
The rest 23 players, out of 24 total, in bonds.
The company said this is the fifth
the private sector witnessed a nearly
consecutive year of surplus (profit AT1 bonds, also known as perpetual
19 per cent increase in their combined
sharing) payments to the policyholders bonds, do not have any fixed maturity
new premium income to Rs 9,962.22
and is 20 per cent more than the profit but offer relatively higher rates as
crore in July 2022 against Rs 8,403.79
shared with policyholders in FY21, those are considered quasi-equity
crore in July 2021.
making it the largest so far. instruments with a larger risk to the
On a cumulative basis, the first year
All participating policies in-force as of investment. The proceeds augment
March 31, 2022 are eligible to receive premium of all the insurers grew by 54 banks' capital base.
this annual payout, it said in a per cent to Rs 1,12,753.43 crore
While SBI may raise up to Rs 7,000
statement. during the April-July period of FY23 as
crore, Canara Bank, Union Bank of
against Rs 73,159.98 crore in the same
The declared profit will be added to India and Punjab National Bank are
period of 2021-22.
the policyholders' benefits, Samit evaluating a new series of perpetual
Upadhyay, chief financial officer at the For LIC, the cumulative new premium
papers, market sources said.
company, said. in the first four months of the current
"The latest relaxation has increased
He said the company's individual fiscal was up by over 62 per cent to Rs
investor appetite for AT1 bonds as
weighted new business premium 77,317.69 crore.
banks will be able to raise more capital
income rose to Rs. 4,455 crore in FY22, Premium income of the private players
via such instruments," said Sushanta
up 30 per cent from Rs. 3,416 crore in rose by 39 per cent in April-July of FY23
Mohanty, general manager - treasury
FY21. to Rs 35,435.75 crore.
at Bank of Baroda. "With credit
demand coming up, it is helpful for
New premium income of Banks line up Additional
banks," he said.
life insurers up by 91% tier plans after IRDAI
The non-food credit growth, or the
New business premium income of life
opens door to insurers loans given to companies and
insurance companies witnessed a
surge by 91 percent to Rs 39,078.91 Lenders from Bank of Baroda to State individuals, recorded 13.7% growth in
crore in July as against Rs 20,434.72 Bank of India are lining up plans to raise June this year compared with 4.9% a
crore during the corresponding period about Rs 10,000-15,000 crore in the year earlier. This has necessitated
of last year. next two months through additional banks to raise more capital.
The Insurance Times, September 2022 15