On Friday, Insurance Regulatory and Development Authority (Irda) released the first year premium collection

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figures of life insurers for May 2011.

As per the data the new premium collection of 23 insurance companies fell by 12.53 per cent in May, compared with the same period last year. First year premium collection, which indicates the new business income for the life insurers, in May 2011 came down to Rs 7,190.08 crore from Rs 8,220.26 crore in May 2010.

However, the premium income has increased 42 per cent in comparison with April 2011, in which period Rs 5,063.37 crore were collected. All four segments of the business, individual single premium, individual regular premium, group single premium and group regular premium policies has grown 70.38 per cent, 26.67 per cent, 44.45 per cent and 37.62 per cent respectively.

The decline in premium collection on year-on-year basis can primarily be attributed to the fall in individual regular premium, from Rs 3,334.71 crore in May 2010 to Rs 2,355.61 crore in May 2011, a plunge of 29.36 per cent and individual single premium collection, which slumped 27.99 per cent, from Rs 2,547.20 crore in May 2010 to Rs 1,834.15 crore in May 2011.

Insurers have however shown growth in their group insurance business. Premium collection from the group single premium policies has increased from Rs 1,116.51 crore in May 2010 to Rs 1,538.64 crore in May 2011, an increase of 37.81 per cent.

Also, Rs 1,221.83 crore collected in May 2010 from group regular premium policies has gone up to Rs 1,461.67 crore in May 2011, a growth of 19.63 per cent.

Out of the total 23 life insurers only five insurers managed to show positive growth. DLF Pramerica Life Insurance Company has shown the highest growth of 65.81 per cent, as the collection rose from Rs 3.60 crore to Rs 5.97 crore.

ING Vysya Life Insurance Company, Canara HSBC Oriental Bank of Commerce Life Insurance Company, Star Union Dai-ichi Life Insurance Company and IndiaFirst Life Insurance are the other insurers to show growth.

Reliance Life Insurance Company, Bharti AXA Life Insurance Company and IDBI Federal Life Insurance Company witnessed the highest decline of 57.02 per cent, 55.35 per cent and 54.01 per cent respectively.

Among the private players, SBI Life Insurance Company has collected the highest premium of Rs 394.38 crore, although the company has witnessed a drop of 10.87 per cent in comparison with May 2010. It had collected Rs 442.50 crore in May 2010.

Premium collected by the Life Insurance Corporation of India (LIC) also declined to Rs 5,554.31 crore against Rs 5,909.15 crore it collected in May 2010, a drop of 6 per cent.