Mumbai, May 22, 2012: Kotak Mahindra Old Mutual Life Insurance Limited (Kotak Life Insurance) today announced profit growth of 109 per cent. Profit after tax for FY 2011-12 stood at Rs. 211 crores, up from Rs. 101 crores the previous year. The Company has wiped out all its accumulated losses and added Rs. 51 crores to its net worth which now stands at Rs. 613 crores.
The company has declared bonuses in respect of participating policies with an accumulation fund, resulting in total returns for the year ended 31st March 2012 of 8% for annuity policies and 7% for all other policies. A reversionary bonus of 2% has also been declared on products eligible for reversionary bonus. These bonus declarations resulted in the value of policyholders’ benefits increasing by Rs. 33 crores, an increase of 26% over the previous year.
FY 2011-12 is the fourth consecutive year the company has declared profit.
v Accumulated losses eliminated. Net worth increases by Rs. 51 crores to Rs. 613 crores
v Gross Total Premium Received was Rs. 2937 crores, of which new business premium accounted for Rs. 1164 crores and renewal premium accounted for Rs. 1773 crores
v Sum Assured increased by 26% to Rs 1,63,600 crores from 1,29,900 crores the previous year
v New Business Sum Assured increased by 19% to Rs. 90,474 crores from 75,909 crores the previous year
v Wrote 46053 policies in the rural sector representing 22.2 % of total policies
v Covered 178470 lives in the social sector as against the mandated 55000 lives
v Total Assets under Management have grown by 13% to Rs 9723 crores.
v Covered 42.4 lakh lives as on 31st March 2012 an increase of 14% over the previous year
v Operating Expense ratio has reduced to 18.8% from 19.5% in previous year ( Total Expense incl. Service Tax Expense)
About Kotak Mahindra Old Mutual Life Insurance Ltd
Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. A Company that combines its international strengths and local advantages to offer its customers a wide range of innovative life insurance products, helping them take important financial decisions at every stage in life and stay financially independent. The company covers over 4 million lives and is one of the fastest growing insurance
About Kotak Mahindra Group
Established in 1985, the Kotak Mahindra Group is one of India’s leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group’s flagship company, received a banking license from the Reserve Bank of India (RBI). With this, KMFL became the first non-banking finance company in India to become a bank – Kotak Mahindra Bank Limited. The Kotak Mahindra Group has a consolidated net worth of Rs 12,901 crore (approx US$ 2.5 billion) as on March 31, 2012. The Group offers a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, mutual funds, life insurance and investment banking, the Group caters to the diverse financial needs of individuals and the corporate sector. The Group has a wide distribution network through branches and franchisees across India, and international offices in London, New York, California, Dubai, Abu Dhabi, Bahrain, Mauritius and Singapore. For more information, please visit the company’s website at http://www.kotak.com
About Old Mutual
Old Mutual is an international long-term savings, protection and investment Group. Originating in South Africa in 1845, the Group provides life assurance, asset management, banking and general insurance to more than 12 million customers in Europe, the Americas, Africa and Asia. Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999. In the year ended 31 December 2011, the Group reported adjusted operating profit before tax of £1.5 billion (on an IFRS basis) and had £267 billion of funds under management from core operations. For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com