This is despite the market volatility and significant challenges faced by the insurance sector
Aviva Life Insurance announced a profit of Rs29 crore in FY2010-11, for the first year since launch of operations in May 2002, against a reported loss of Rs345 crore in the previous year. This is despite the market volatility and significant challenges faced by the sector. The company maintained total premium collected at par with previous year at Rs2,345 crore with total assets under management pegged at Rs7,654 crore.
TR Ramachandran, CEO & MD, Aviva India 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-organise the product portfolio and continuous management focus on achieving higher productivity, improving persistency and strategic cost management."
The company has capitalised on the large opportunity in the protection and child segment and in the last FY, nearly 10% of business has been contributed by each of these segments. Aviva India introduced a complete suite of protection products, including its online term plan Aviva i-Life. Aviva India also launched seven traditional products and four unit-linked products in FY10-11.
The strong management focus towards resource optimisation and cost efficiencies led to a reduction of 20% in total operating expenses. The company's operating expenses to gross written premium ratio improved from 30% in FY09-10 to 24% in FY10-11.
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