The Hindu Business Line : HDFC Chubb General may hike capital base soon

HDFC Chubb General Insurance Company Ltd, the joint venture between HDFC Ltd and the US-based Chubb Corporation, is considering a proposal to hike the equity capital base to meet the expanding business activities.

Mr K.V. Prasad, Business Head, Commercial Insurance, told Business Line that the equity capital base of the company currently stands at Rs 125 crore, which company plans to increase soon.

He was in town on Friday to inaugurate the company's new office, which is equipped to meet the customers' requirements and technical expertise in rendering customer service.

Refusing to comment on the exact amount of fresh capital to be infused, he said, "A decision will be taken shortly and the company will have fresh capital infusion in 2005-06."

According to Mr Prasad, though the company was a late entrant into the Indian private non-life insurance arena, it has successfully increased its presence across the country and is poised to increase the market share to a healthy level.

Having posted Rs 112 crore for the last fiscal, the company has already recorded a business of Rs 120 crore during the current fiscal for the 11 months ended January. "We expect to close the year with at least Rs 150 crore business."

HDFC Chubb has also chalked out plans to expand the agents force from 100 upwards in the next few months.

Stating that the company plans to focus more on commercial line of insurance and increase the penetration of liability products, Mr Prasad said that the company expected its business volumes from liability products segment to increase to at least 15 per cent of the total business during the current fiscal.

"Our current product spectrum ranges from standard coverage for automobile, home, accident, business travel and commercial property to highly innovative insurance solutions in liability and other niche requirements of specific industry segments," Mr Prasad said.

"We have plans to aggressively sell liability and other niche products for the new age enterprises, while continue to meet the requirements of conventional industries."

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