LIC's market share falls 8% during 2003-04

LIC lost market share after posting a marginal 1.93 growth in business, while private players grew 153%.

Life Insurance Corporation lost more than eight per cent market share after posting a marginal 1.93 per cent growth in business last fiscal, while private players grew by more than 153 per cent during 2003-04.

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Despite the flat growth of market leader LIC, the life insurance industry as a whole grew by a modest 10.5 per cent to mop up Rs 18,710 crore in premium income for new businesses in 2003-04 as against Rs 15,977 crore in 2002-03.

LIC's market share in terms of premium collection came down to 87 per cent in March end 2004 from 94.34 per cent in 2002-03, according to data compiled by IRDA.

The state-owned insurer mopped up Rs 16,285 crore in premium from new businesses during 2003-04, which is marginally higher than Rs 15,977 crore in 2002-03.

LIC mopped up Rs 4,915 crore in March, which is more than one-fourth of its total premium income for the entire fiscal.

In contrast to LIC, private players grew by 153 per cent by mopping up an aggregate Rs 2,425 crore in premium last fiscal and cornered 12.96 per cent of the market.

The private players had only 5.66 per cent of the market pie in 2002-03.

ICICI Prudential led the chart for private players with a market share of four per cent followed by Birla Sunlife (2.4 per cent), HDFC Standard Life (1.12 per cent), SBI Life (1.05 per cent), Tata AIG and Allianz Bajaj (0.96 per cent each).

ICICI Prudential doubled its business to Rs 751 crore last fiscal from Rs 364 crore in 2002-03.

Birla Sunlife posted 247 per cent growth in premium income at Rs 450 crore last fiscal compared to Rs 202 crore in 2002-03.