The Hindu Business Line : AMP Sanmar to look at capital infusion in 2005

Mr Graham Meyer, Managing Director, AMP Sanmar Life Insurance Co Ltd (left), Mr N. Sankar, Chairman, AMP Sanmar Insurance Co Lt, Mr Craig Dunn, MD, AMP Financial Services, Australia, and Mr B. Natraj, Chief Operating Officer, AMP Sanmar Life Insurance, at a press conference in Chennai on Wednesday. — Bijoy Ghosh

Chennai , March 31

AMP Sanmar Life Insurance Co Ltd will look at fresh capital infusion only in early 2005 and the funds that it has will see it through 2004, according to company officials.

In February, the promoters of AMP Sanmar - the Chennai-based Sanmar group and AMP of Australia - brought in Rs 35 crore as capital, adding to the existing capital of Rs 125 crore.

At a press conference here today, Mr N. Sankar, Chairman, AMP Sanmar, and Mr Graham Meyer, Managing Director, said the recent capital infusion was more to meet regulatory requirements than liquidity needs. Mr Meyer said the money would see the company through 2004 and the requirement of fresh funds was being worked out.

AMP Sanmar would increase its coverage in the southern region and expand operations in Maharashtra and Gujarat. The total number of advisors would grow from 5,600 to over 9,000. There were no plans at this stage to enter the retail market in the East and the North, Mr Meyer said.

The company would shortly launch three customised term assurance products that would address normal term cover requirements as well as protection against liabilities on loans. It had received the Central Provident Fund Commissioner's approval to offer life policies for Employee Deposit Linked Insurance segment. This would speed up growth of its group products portfolio, he said.

Mr Meyer said that at present, 95 per cent of the premium income came from the retail segment and the balance from the corporate segment. In 2004-05, he expected the corporate segment to contribute 30 per cent to 35 per cent of the premium income.

During April 2003 to February 2004, AMP Sanmar's premium income was Rs 24.4 crore, a 276-per cent growth over the premium income of Rs 6.5 crore in 2003-04. Mr Meyer was confident that this kind of growth would be recorded in 2004-05 as the corporate segment was an emerging one and AMP Sanmar planned to tap it. The company had teams to cover the corporate segment in Chennai, Mumbai, Hyderabad, Bangalore and Kolkata. Delhi too would be shortly covered under this.

Mr Craig Dunn, Managing Director, AMP Australian Financial Services, said AMP Capital Investors, the funds management arm of AMP, recently launched its second infrastructure fund for India, jointly with the Asian Development Bank, with a contribution of AS$100 million.

In talks with Waugh to renew contract

AMP Sanmar Life Insurance Co Ltd is in discussions with former Australian cricket captain, Steve Waugh, to renew his contract. Steve Waugh is the brand ambassador for AMP Sanmar and his three-year contract is due to end in 2004.

Mr Graham Meyer, Managing Director, AMP Sanmar, told reporters on Wednesday that Steve Waugh had helped in brand penetration and recall.

The company was talking to him about renewing his contract, he said and added that Steve Waugh was expected to visit India in May.