The Hindu Business Line : ING Vysya Life targets Rs 200-crore income

Mr Frank Koster, Managing Director and CEO-designate, ING Vysya Life Insurance, addressing a press conference in Bangalore on Thursday. — G.R.N. Somashekar

Bangalore , June 24

ING Vysya Life Insurance Co Pvt Ltd aims to double its income to Rs 200 crore in the current fiscal, Managing Director and Chief Executive Officer-designate, Mr Frank Koster, said.

The company said its total income for 2003-04 was Rs 102 crore, surging 227 per cent from the previous year. Premium income jumped 317 per cent to Rs 88.5 crore. The company expects its premium income to grow in line with projected growth of the total income.

Total sum assured was Rs 2,626 crore as on March-end with 1,15,282 individual life policies in force. Investment return on total funds under management was 7.58 per cent in the last fiscal. The company, which till date has no exposure to equity, plans to enter the equity market ``in the next two months,'' Mr Koster said.

The foray is scheduled post-budget in the hope that the currently choppy market gains stability. Most of the equity investment is likely to be in stocks that offer greater scope for capital appreciation, Mr Koster said. ``We can invest up to 20 per cent of our funds in equities,'' Mr Koster said, adding, ``however, we will like to take a cautious approach.''

ING Vysya Life will also introduce unit-linked products in the latter part of the current year, Mr Koster added.

The insurer plans to swell its client base to 2,50,000 by the end of next fiscal. The growth in client addition is likely to be fuelled by the increase in insurance advisors, as well as deepening the company's own reach within the country. Last fiscal, 16 per cent of the life business came from bank branches, majority of it in the form of rural insurance.

ING Vysya Life with a capitalisation of Rs 245 crore is open to further capital infusion and ING hiking stake in the company, if regulations permit, Mr Koster said.