OREANDA-NEWS. June 14, 2011. Tata AIG Life Insurance Company (Tata AIG Life), today, declared its financial results for FY2010-11 posting a net profit of Rs51.79 crore. Through superior efficiency in its business synergies and processes, Tata AIG Life has not only achieved break-even in its 10th year of operations, but has also recorded a growth of 14 per cent in its total premium income during a year that saw the life insurance sector witness many a transformation.

The total premium income for the financial year ended March 2011 stood at Rs3,985 crore as  against Rs3,494 crore posted during FY2009-10. Of this, the new business premium collection stood at Rs1,332 crore. The renewal premium for the same period grew by 22 per cent to Rs2,653 crore from Rs2,172 crore in FY2009-10. The unit linked insurance products accounted for 72 per cent of the new business premium.

During the year, the company reduced its operating expenses to enhance its efficiency to achieve  an operating expenses to total premium ratio of 24 per cent against 29 per cent in financial year 2009-10.

Speaking on the company's results, Suresh Mahalingam, MD and CEO, Tata AIG Life, said, "Tata AIG Life looks back on a successful fiscal. Our cost optimisation strategies and continued focus on persistency of business over the last four quarters resulted in this profitable growth. To support our future growth plans, we have infused fresh capital of Rs33 crore during the fiscal ending March 31, 2011."

He further added, "The company's total assets under management (AUM) have increased by 34 per cent to Rs12,658 crore from Rs9,456 crore in the last fiscal. The paid-up capital stands at Rs1,954 crore. A solvency margin of 216 per cent was a very positive indicator of the company's overall financial health."