Aviva Life anticipates de-growth in premium income for FY14

KOLKATA: Aviva Life Insurance anticipates de-growth in premium income collection for the current financial year.

"Our total premium income collection during the current fiscal is expected to be in the region of Rs 1,800 crore to Rs 1,900 crore," MD and CEO of Aviva Life Insurance T R Ramachandran told reporters here today.

Out of this amount, first premium income would be around Rs 600 crore to Rs 700 crore, he said.

Ramachandran said there would be de-growth in premium income in the current fiscal as compared to the last fiscal.

The main reason for the de-growth in premium income collection is slowdown in the economy, he said, adding that for Aviva, term insurance policies constitute 20 per cent of overall sales.

On capital infusion, he said the capital base of Aviva at the moment is Rs 2,005 crore.

"There is no immediate need for fresh capital and the solvency ratio is 400 per cent as compared to the mandated 150 per cent," he added.