Tata AIG Life Insurance Company has achieved a break-even in its tenth year of operations and posted a net profit of Rs.51.79 crore in the year ended March 31, 2011. It has recorded a growth of 14 per cent in its total premium income at Rs. 3,985 crore against Rs 3,494 crore in 2009-10.
Of this, the new business premium collection stood at for Rs. 1,332 crore. The renewal premium for the same period grew by 22 per cent to Rs 2,653 crore from Rs. 2172 crore in the financial year 2009-10. During the year, the company reduced its operating expenses to enhance its efficiency to achieve operating expenses to total premium ratio of 24 per cent against 29 per cent in the previous financial year 2009-10.
Suresh Mahalingam, Managing Director and CEO, has stated in a release that the company's cost optimisation strategies and continued focus on persistency of business over the last four quarters resulted in this profitable growth.
