The Hindu Business Line : Birla Sun aims at higher growth

FLEXIBLE SCHEME: Ms Anjana Grewal, Senior Vice-President, Marketing & Communication, Birla Sun Life Insurance Company Ltd, and Mr Vikram Mehmi, President & CEO, at a press conference to announce the launch of Birla Sun Life Insurance-Gold-Plus Plan in Mumbai on Wednesday. — Shashi Ashiwal

Mumbai June 13 Birla Sun Life Insurance will take another three years to break even.

Mr Vikram Mehmi, President and CEO, Birla Sun Life, said the focus of the company this year would be on growth, though break even is three years away.

"Break even is not as important as increasing the value of our business. This year, we plan on growing faster or at least in line with the industry," he said.

Birla Sun Life Insurance registered a growth of 36 per cent in new business premium at Rs 953 crore in 2006-07.

This was, however, much lower than the life insurance industry's growth of 110 per cent in the recently concluded fiscal.

40% CAGR

Mr Mehmi said there was a slowdown last year as there were some delays in launching new products.

The insurance industry was expected to grow at a compounded annual growth rate of 40 per cent in the next few years and that the company's growth would be in tandem with this.

In the past six months, it has launched six products.

The company would introduce new pension, health and micro-insurance plans this year, he said.

The company plans to double its agency force from 50,000 to 1 lakh.

It has a capital base of Rs 672 crore. Mr Mehmi said that more capital would be infused as per the requirements.

New product

The company on Wednesday launched a new product called "Birla Sun Life Insurance - Gold Plus Plan".

The plan offers the convenience of paying for a limited period of three years as well as the flexibility to reduce the premium from the second policy year.

It offers the choice of seven fund options, one of which involves a maximum investment of 100 per cent in equity.

The minimum annual premium for this particular policy is Rs 10,000. The premium allocation charge is 8 per cent.