Reliance Life Insurance net profit doubles in Q1

Reliance Life Insurance net profit doubles in Q1

Reliance Life Insurance has recorded a whopping 140 per cent jump in the first quarter net profit to Rs 19 crore in the current financial year.

In the three-month period ended June 30, 2012, the company recorded a net profit of Rs 19 crore, as against Rs 8 crore in the year-ago quarter.

Reliance Life is part of Anil Ambani-led Reliance Group's financial services arm Reliance Capital Ltd.

Reliance Life's total premium (net of reinsurance) in the last quarter was Rs 810 crore, while total funds under management stood at Rs 18,586 crore as on June 30, 2012, its parent company said, while announcing its quarterly results.

Reliance Life recorded its first full-year net profit at Rs 373 crore for the fiscal ended March 31, 2012. It had sold over one million policies in 2011-12 and garnered a total premium of Rs 5,498 crore in that year.

The total number of insurance agents at Reliance Life stood at about 1.2 lakh, a decline of one- hird from the year-ago levels, as part of the company's focus on improving productivity and performance of agents.

Reliance Life also helped Reliance Capital post a consolidated net profit of Rs 45 crore for the quarter ended June 30, 2012, representing an increase of 30 per cent.

Reliance Capital's consolidated total income rose 12 per cent to Rs 1,676 crore in the quarter, which was also helped by increase in topline for commercial finance and general insurance businesses.

Nippon Life, Asia's largest private life insurer and seventh biggest globally with an asset size of USD 650 billion, has acquired a 26 per cent stake in Reliance Life for Rs 3,000 crore.