The net profit of the state-owned Life Insurance Corporation shot up 38% in 2015-16, but most private life insurers witnessed tepid growth. Other bigger players such as SBI Life, HDFC Life and Max Life also churned out lacklustre numbersObservers say the new Ulip rules are to be blamed for private insurers' poor performance. Since a lot of Ulips were lapsing, the bottom line of life insurers showed a healthy growth in profits," says Manoj Nagpal, CEO of Outlook Asia Capital. Reliance Life Insurance, which made a net profit of Rs 135 crore in 2014-15, stumbled into the red with a loss of Rs 197 crore in 2015-16. Birla Sun Life Insurance saw its profits halve from Rs 285 crore to Rs 140 crore.On the other hand, LIC does not have a big Ulip portfolio and, therefore, was not impacted by the new rules.

Source: Economic Times September 12, 2016 00:56 UTC