Renewal premium of the industry increased from Rs 79,168 crore to Rs 96,917 crore, an increase of 22 per cent on y-o-y. In the case of ULIPs, the renewal premium increased by 41 per cent to Rs 37, 543 crore from Rs 26, 638 crore, indicating the popularity of this instrument.

According to S B Mathur, Secretary General, Life Insurance Council, "The drop in expenses was possible due to effective cost-cutting measures adopted by the life insurance industry, by curtailing operating expenses and rationalising their distribution channels coupled with an increase in total premium to Rs 164,353 crore from Rs 131,382 crore, an increase of 25 per cent."

The total infrastructure investment made by life companies stood at Rs 1,30,009 crore. Equity investment of life companies was in tune of Rs 44,358 crore for the period April-December 2009.

New business premium increased by 29 per cent to Rs 67, 438 crore from Rs 52, 215 crore with private companies also showing a positive growth. Share of linked business in new business has decreased from 61 per cent (December 08) to 53 per cent (December '09), indicating customers discomfort towards market volatility and opting hence opting fo conventional products.

Total benefits paid by life compa nies to the policy-holders were R 48,184 crore as compared to R 36,981 crore in the correspondin period last year.

The Life Insurance Council is statutory body under the Insuranc Act of 1938 and is the industry as sociation representing 22 life insur ers operating in the country.