ICICI Prudential Life turns profitable Sify
ICICI Prudential Life Insurance, the country's second-largest life insurer, has turned profitable during the year-ended March 2010.
The company's net profit was estimated at Rs 258 crore against a loss of around Rs 780 crore in the previous financial year. Low operational costs, high renewal premiums and a decline in capital-consuming new sales helped the life insurer swing to profit.
Fund managers optimistic, but cautious
This is the first time the company has reported profits since it started operations in 2001.
"We have significantly brought down our management expenses. Reduction in cost and increase in renewal premium income helped us report profits," said a senior executive of ICICI Prudential. There was no capital infusion during the last financial year.
The management expense ratio for the insurer came down from 11.78 per cent in 2008-09 to 9.5 per cent in 2009-10.
Timing is a concern
There are only a handful of profitable life insurance companies which includes SBI Life, Bajaj Allianz, Sahara Life and Kotak Life Insurance. In recent months, most insurance companies have turned their attention to turning profitable and the list is expected to grow this year.
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