At a time when most life insurance companies struggled, Kotak Mahindra Old Mutual Life Insurance Ltd (Kotak Life Insurance) has managed to report a 42% growth in its profits. The company’s profit after tax (PAT) for 2010-2011 stands at Rs 101 crores up from Rs 71 crores in the previous year.
This is the 3rd consecutive year that Kotak Life Insurance has declared profits. The company’s Managing Director, Pankaj Desai, has attributed this success to its strong sales force coupled with innovative new products and a good relationship with it intermediaries.
Commenting on the company’s performance, he said, “As the Insurance industry enters into the next phase of consolidation, our focus clearly is on efficient management of capital, driving efficiency at the distribution level, cost consciousness and quality in customer service. We are happy to have posted good growth despite the uncertainty the sector witnessed the previous year and this can be attributed to our strong sales force, innovative new products and strong relationships with intermediaries.”
Key highlights:
- Capital remained constant at Rs. 562 crores. There was no capital infusion in 2010-11
- Gross Total Premium Received has grown to Rs. 2975 crores, of which new business premium accounted for Rs. 1253 crores and renewal premium accounted for Rs. 1722 crores
- Sum Assured increased by 42% to Rs 1,29,900 crores
- Covered 37.4 lakh lives as on 31st March 2011 an increase of 40% over the previous year
- Operating Expense ratio has reduced to 19% as against 20% in previous year
- Total Assets under Management have grown by 28% to Rs 8592.28 crores
Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. The company covers over 3 million lives and has a variety of Protection plans with an online term plan called Kotak e-term or e-preferred term. They also have a wide variety of Savings and Investment plans, Retirement plans and Unit-linked Child plans.
