Aviva Life Insurance Company has reported profits of Rs 29 crores in FY 2010-11 for the first time since its foray into the insurance business in 2002.
In 2009-10, Aviva India reported a loss of Rs 345 crores. The company bounced back in fiscal 2011 despite various challenges faced by all life insurance companies.
Aviva Life has managed to achieve this feat by focusing on the child insurance space as well as protection plans. They have launched various insurance products that help parents secure their child’s futures. At the same time, their newly launched term plan Aviva i-Life is also one of the cheapest term plans in the market with a high life cover.
Aviva India CEO & MD, TR Ramachandran, 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 re-organize the product portfolio and continuous management focus on achieving higher productivity, improving persistency and strategic cost management.”
Key Highlights of Aviva Life Insurance Company
- The total premium collected for FY 2010-11 – Rs 2,345 crores
- The solvency ratio is among the highest in the industry at 540%
- Claim settlement ratio better than the industry average
- Enhanced efficiency of the business
- Sustained growth despite market volatility
- Significant enhancement in Business persistency
- Over achieved rural and social sector obligations, covered more than 3.5 mn lives
Aviva India introduced initiatives like proposal stage calling and most important terms in the policy document to ensure that their customers were fully aware of their purchases. To ensure an easy and smooth renewal process they introduced numerous new touchpoints for customers.
The company maintained the total premium collected at par with the previous year at Rs 2,345 crores with total Assets under Management at Rs 7,654 crores. Aviva India’s strong focus on cost efficiency and resource optimization resulted in a 20% reduction in its total operating expenses.
Also, read Aviva launches i-Life low-cost term plan
