Hyderabad: The domestic arm of the Netherlands-based financial services firm ING Groep NV, ING Vysya Life Insurance Co. Ltd expects to break even in 2011-12 following a shift in focus and growth in premium income, said managing director and chief executive officer Kshitij Jain.
The firm also expects to clear accumulated losses of some Rs900 crore by 2015-16. ING Vysya Life reported a net loss of Rs194 crore in 2008-09.
Buoyed by a 24% growth in premium income to Rs1,442 crore in the year ended March, the firm is targeting a near-40% increase in premium income to Rs2,000 crore in 2009-10, Jain said. This growth came after ING Vysya Life shifted its focus back to traditional insurance products from unit-linked insurance policies, or Ulips, after the equity market turned volatile last year.
Ulips are insurance plans, the premium of which is invested in the stock markets. Traditionally, life insurance products typically provide risk cover alone at minimum or no risk to the premium.
“From a Ulip-traditional products ratio of 73%:27% in 2007-08, we moved to 55%:45% ratio in (the) fiscal ended March. We consider this a reasonably balanced portfolio and we will try to continue to maintain this ratio broadly,” said Jain.
ING Vysya Life has also stepped up its focus on renewal premium, or the payment due on the renewal of an insurance policy.
In 2008-09, the firm collected Rs753.3 crore in renewal premium, a 66% rise over the previous year.
Expecting a similar growth in 2009-10, Jain said, “This should help us achieve our objective of Rs2,000 crore in total premium income during the current fiscal, which translates into a growth of 38.66% over last year’s total premium income.”