Hyderabad, Feb. 22 Birla Sun Life Insurance plans to infuse Rs 175 crore capital by the end of the current financial year.
The company, which is capitalised to the tune of Rs 2,325 crore at present, is also lining up another Rs 500 crore in FY 2011.
“We should be closing FY11 with a capitalisation of Rs 3,000 crore,” Mr Vikram Kotak, Chief Investment Officer, Birla Sun Life Insurance, told Business Line here.
Once guidelines on Initial Public Offers (IPOs) by the insurance companies are formulated by the Insurance Regulatory and Development Authority (IRDA), the company would also consider going public. “The industry is ready for IPOs and Birla Sun Life Insurance is also in line,” Mr Kotak said.
Traditional products
Birla Sun Life, which is mainly driven by Unit Linked Insurance Plans (ULIPs), will be launching three more funds for which it had IRDA approval. It now has 31 fund options. “We are seeing opportunity in markets now. Banking, cement and capital goods are our priority areas for investment as of now,” Mr Kotak said.
Birla Sun Life would be strengthening the non-ULIP product portfolio. “We are adopting a de-risking model. We will bring in some new pension plans and traditional products in the next six months,” he added. Health insurance has also been a priority for the company.
It is also expanding its agent force from 1.8 lakh to two lakh in 12 months.
On the industry scenario, Mr Kotak said the cap on charges which made consumers more powerful was giving an ‘innovative push to the insurance sector.
“The current industry growth is at 29 per cent on year-on-year basis. The increasing distribution reach and investment performance may lead the industry to grow between 18 per cent and 20 per cent in the next five to 10 years,” he opined.
