The Hindu Business Line : MetLife's first year premiums rise 141%

Speaking to newspersons here, the MetLife India's Managing Director, Mr Rajesh Relan, said, "Bancassurance contributed substantially to our premium accretions."

He said the growth was highest during the fourth quarter when first year premiums grew by 166 per cent to Rs 173 crore.

He said at least 80 per cent of the premium accretions came from the unit-linked insurance plans (ULIP). The remaining was from conventional term and savings linked plans.

He said, "customers prefer ULIPs over conventional products." But he admitted that the preference was helped MetLife, since ULIPs are considered capital efficient products. This was because in ULIPs the investment risk is entirely on the policyholders.

However, MetLife would still require capital to sustain the growth momentum in the country.

He said the board of the company was meeting next month to assess the capital requirements.

MetLife is a joint venture between MetLife International Holdings of the US, Jammu and Kashmir Bank, Pallonji & Co and a group of private investors. MetLife International is a 26 per cent stakeholder in the joint venture.

Two new products

MetLife launched two insurance products specially tailored for meeting the requirements of its bancassurance partner, Karnataka Bank.

The products branded as Sumangali and Vidyakiran, are identical to MetLife's ULIP, Met Smart Plus.

Speaking on the occasion, the Karnataka Bank's Chief Executive Officer, Mr Ananthakrishna, said, "

The partnership has benefited us and increased our non-fund revenues."

MetLife earned Rs 60 crore, since the inception of the bancassurance arrangement.

Karnataka bank accounts for about 8 per cent of MetLife's premiums and accretions have been growing at an annual clip of 40 per cent.