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C. Shivkumar

Bangalore , Jan. 21

TORONTO-BASED Sun Life Financial Inc has indicated that it would raise its equity stake to 49 per cent in its Indian joint venture, Birla Sun Life Insurance Company Ltd (BSLI).

Speaking to Business Line, Mr Nani B. Javeri, Chief Executive Officer of BSLI, said that the foreign partners were awaiting announcement of the Government's new guidelines. Presently, foreign equity stake is capped at 26 per cent. The Aditya Birla group holds the remaining stake. BSLI is currently capitalised at Rs 180 crore. Mr Javeri said that the equity had been hiked by another Rs 20 crore to meet the solvency margins in view of the expanding business of BSLI.

BSLI is targeting a premium accretion of Rs 270 crore by the end of the current financial year. For the first nine months of the current financial year, the premium accretions were Rs 166.5 crore. This is a 200 per cent growth over the over the corresponding period of the previous year. With this growth, BSLI is ranked among the top three private sector life insurers in the country in its savings linked policies.

About 46 per cent of these accretions were contributed by direct selling. The remaining was contributed by group selling and alternative channels, including bancassurance. The group selling included gratuity and group insurance plans to corporates. Mr Javeri said that BSLI was also targeting the pension business to drive its growth. It would make its foray into the business once the pension regulators investment guidelines are finalised.

More Stories on : Life Insurance | Mergers & Acquisitions

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