Birla Sun Life Insurance - Second Among Private Life Insurers in India
Birla Sun Life Insurance retains the number 2 position amongst private life insurers based on New Business Premiums with 10% credit for Single Premiums
(PRWEB) June 16, 2005
Birla Sun Life Insurance Company Limited (BSLI) continues to retain its number 2 position amongst private life insurers based on annualized new business premiums with 10% credit for single premiums. Since its inception BSLI has been reporting its new business premiums in accordance with this international practice of measuring premiums on an anuualised basis with only 10% credit for single premiums.
Says Mr. Peter Akers, COO, BSLI, "Across the world life insurers report their new business premiums for any year taking only 10% credit for single premiums. This ensures that appropriate importance is given to different types of business." He further added, "Life Insurance is a long term business and the longevity of the business depends on the regularity of the premium inflows. It is important for the healthy development of a life insurance company that there should be an optimal mix of regular premiums and single premiums".
The international practice is to report premiums on an annualized basis. The reason for this is that in case of reporting of premiums on modal (cash receipt) basis the premium figures will be affected by the different modes of payment. If an annualised basis were not used then companies writing monthly premium policies would under report their new business premiums during some periods compared to those companies writing annual premium policies. Similarly the premium figures could be distorted for insurers writing disproportionate amounts of single premiums. This in the Indian context can be very pronounced since large portions of sales happen in the last quarter of the financial year. Thus while all non annual (monthly, quarterly, half yearly etc.) premiums are measured on an annualized basis, only 10% of single premiums are measured.
About the Aditya Birla Group:
The Aditya Birla Group has a turnover exceeding Rs. 28000 crores (as on March 31, 2004) and is one of the largest business houses in India. It enjoys a leadership position in all the sectors in which it operates. With over 75 business units, spanning the South East Asian belt, Africa, Canada and the UK among others, it is reckoned as India's first multinational corporation. The group is anchored by 72,000 employees and has 7 lakh shareholders, with an asset base of over Rs.23000 crores.
About Sun Life Financial Inc.:
Sun Life Financial Inc. is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31, 2004, the Sun Life Financial group of companies had total assets under management of USD 282 billion.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol "SLF".
# # #
