Chennai: Aiming for a pan-India operation, Shriram Life Insurance Company, a joint venture firm of South Africa-based Sanlam Group and city-based Shriram Group, planned to make a capital infusion of Rs50 crore in the next 2-3 months, a top official said on Wednesday.
The company, which began its operations four years ago, has already made a capital infusion of Rs125 crore.
“We have got ambitious plans of making capital infusion of Rs 50 crore in the next 2-3 months... We have got a premium of Rs1,650 crore last year with APE (Annualised Premium Equivalent) of Rs 850 crore,”Shriram Life Insurance managing director Akhila Srinivasan said.
Besides the insurer has also planned to focus on north and eastern markets through their joint venture firm Sanlam.
“We predominantly have strong operations in south, western and in the central regions.. We want to tap unexplored areas in the north and eastern regions.. already we have opened 35 branches (in these areas)..”, she said.
Asked whether Sanlam Group was increasing its stake in Shriram Life Insurance, she said “discussions are on” in the direction but declined to divulge more details.
Last week , Sanlam Group had said it was betting big on the domestic market with India being one of their “core” areas. The group holds 26% stake in Shriram Life Insurance Company and is mulling to increase its stake by adding another 20%.
On future plans, Srinivasan said they would add another10,000 agents this year. “Already we have about 20,000 agents on our rolls, in this calendar year we will add another 10,000 (agents),” she said
With the Insurance regulator announcing new norms for insurance firms last year, Srinivasan said the company were not sure whether it would register profits this year.
“We are not sure whether we will make profits...Less than our 10 % sale comes from ULIPS (Unit Link-Insurance Plans).. next year, we are sure (we will make profits)”, she said.
The Insurance Regulatory and Development Authority last year announced new norms mandating companies to publish accounts on a half-yearly basis regularly.