Bajaj Allianz Life Insurance has become the only private life insurance company to record profits during the 12 month period ended March 31 2009 despite the ongoing recession all through the world.

Bucking the trend set by its rivals, the insurance giant registered a profit of Rs 45 crore for the fiscal ended March 31, 2009 as compared to loss of Rs 16 crore during the previous year.

According to reports, other private sector players including ICICI Prudential, SBI Life, HDFC Standard reported losses and others are likely to follow suit during the fiscal, which hit the life insurance industry very hard.

Bajaj Allianz’s premium income during the period under review surged by 9% to Rs 10,624 crore, which also comprises the new business premium of Rs 4491 crore and Renewal Premium at Rs 6,133 crore.

During the financial year 2007-08, the company had premium collections of Rs 9,725 crore comprising new business income of Rs 6674 crore and renewal of premium of Rs 3051 crore.

While commenting on the results, Mr. Kamesh Goyal, CEO, Bajaj Allianz, said, “Prudent expense management, pursuing a sustainable growth model have ensured that we balance growth and profitability.”

Bajaj Allianz Life Insurance issued 29-lakh polices during the year. The said figure was the second largest in the insurance industry.

Bajaj Allianz General Insurance recorded a profit of Rs 95-crore during the year ended 2008-09 with a 10% growth in gross written premium of Rs 2,649-crore as against Rs 2,404 crore during the last financial.

As on 31st March 2009, the company’s solvency margin stood at above 250%, whereas its AUM was Rs 17,157 crore.

Mr. Goyal also said that the year 2009-10 would be risky for the insurance segment owing to slump in growth.

The major challenges for the life insurance industry in the year would be expense management and capital, he said.