Aviva Life Insurance posted a profit of Rs 29 crore for the just ended fiscal 2010-11, against a reported loss of Rs 345 crore in the previous year. It has posted profits for the first time since it was launched in 2002.
The company's total premium collected was at par with the previous year's level of Rs 2,345 crore, with total assets under management pegged at Rs 7,654 crore.
Operating expenses
The focus on resource optimisation and cost efficiencies led to a reduction of 20 per cent in total operating expenses, said a press release issued on Thursday. The company's operating expenses to gross written premium ratio improved to 24 per cent, from 30 per cent in 2009-10.
Mr T. R. Ramachandran, CEO and MD, Aviva India, said: “Our business focus has been on sustainable and profitable growth driven by a quality led business model focused on bancassurance.
“The transition to profitability is a result of proactive steps taken to reorganise the product portfolio and continuous management focus on achieving higher productivity, improving persistency and strategic cost management.”