Even as premium income fell, the life insurance industry’s net profit more than doubled during 2011-12, at Rs 5,974 crore, against Rs 2,657 crore the previous year.
Of the 24 life insurers in business during the last financial year, 14 reported profits, according to the Insurance Regulatory and Development Authority’s annual report for 2011-12.
Life Insurance Corporation reported a net profit of Rs 1,313 crore, marking an increase of 12 per cent.
The largest private sector insurer, ICICI Prudential, posted a Rs 1,384-crore profit (Rs 808 crore in 2010-11) for the third year in a row, after incurring losses for eight consecutive years.
Birla Sunlife, Max Life and Tata AIA reported profits of Rs 461 crore, Rs 460 crore and Rs 260 crore respectively for the second year in succession.
There was significant cost-cutting by private life insurers, as shown by the decrease in number of offices. Private life insurers closed 768 offices and opened 305, while LIC established 92 new offices and closed just eight.