MetLife (India) breaks even; posts Rs 35 crore profit

NEW DELHI: Private sector life insurer MetLife (India) today reported a net profit of Rs 35.35 crore, first time since its incorporation, on improved operational efficiencies.

The company had reported a net loss of Rs 274.82 crore in the previous fiscal (2009-10).

Improved operational efficiency coupled with planned sales helped the company register a profit, MetLife said in a statement. Besides, the company also improved on persistency and focused on risk management during the fiscal to reduce claim, it added.

MetLife India Insurance was incorporated in 2001 as a joint venture between MetLife International Holdings, Inc, Jammu & Kashmir Bank, M Pallonji and Co Pvt Ltd and other private investors.

"We have been able to balance our growth with profitability despite the uncertainty in the sector and this can be attributed to our healthy product mix and operational efficiency," MetLife (India) Managing Director & CEO, Rajesh Relan said.

During the fiscal (2010-11) MetLife had a total revenue of Rs 2,615.13 crore, compared to Rs 2,627.63 crore in the previous financial year.

Even as the company's new business premium income fell by 33.49 per cent, renewal income witnessed a 22 per cent jump during the year.

"We are in discussion with leading banks and other financial institutions to expand our distribution, while we continue to improve the productivity and efficiency of our agency business," Relan added.

The company's product portfolio consist of unit linked, traditional and group products and traditional products comprise close to 50 per cent of the basket.