The Hindu Business Line : Bajaj Allianz Life to infuse Rs 100 cr capital

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Kolkata Jan. 22 Bajaj Allianz Life Insurance Co will go in for a Rs 100 crore capital infusion by March 31. The company, which has a relatively low capital base vis-a-vis some of its peers, aims to infuse at least Rs 150 crore every year if it can sustain the current rate of growth.

Bajaj Allianz hopes to break even a few years down the line, somewhat later than what it had originally considered, said Mr Sam Ghosh, CEO. The insurer, he added, is targeting a premium income of Rs 5,000 crore or so this year, which, when achieved, will translate into a growth of 100 per cent. The rate of growth will be in line with what was recorded last year.

More products

On another front, the company hopes to come out with a few more health products. The idea is to cater to various emerging categories of health insurance. Over time, it intends to ensure that at least 5-10 per cent of its overall business gets generated by health insurance.

As things stand, not too many non-Unit Linked Insurance Plan (ULIP) products may be expected from the company. While such products are not being ruled out, the advances recorded by the stock market make it easier for insurers to convince clients about the need for ULIPs, it is felt.

Last week, Bajaj Allianz launched a health care product, aimed at individuals in the 18-57 years age bracket with a minimum cover of Rs 10,000.

The plan will allow hospital cash, surgical benefit, post-hospitalisation benefit and critical illness cover. There will be an accidental permanent total/partial disability cover too — Rs 50,000 payable on total disability and Rs 25,000 payable on partial disability, Ms Ujjaini Dasgupta, Head of Health Insurance, Bajaj Allianz, said.

Valuation exercise

A number of leading investment houses have conducted valuation exercises for Bajaj Allianz Life, Mr Ghosh said, adding that the outcome of these have varied from one firm to another.

The company's valuation, it is pointed out, has already come into play when its Indian promoter's valuation is considered.

"We don't want to comment on these valuations. But we are sure that the issue will become more important in the days ahead," Mr Ghosh told newspersons.