The Hindu Business Line : ING Vysya Life gets nod for expansion

Mumbai, Aug. 28 ING Vysya Life has received shareholders’ approval to expand its capital base up to Rs 1,480 crore. “Our current capital base is Rs 765 crore which will be increased to Rs 790 crore next month. We have the shareholder’s approval to increase this to Rs 1,480 crore, which is enough to sustain the growth needs of the business until next year,” said Mr Kshitij Jain, Managing Director and CEO, ING Vysya Life.

On a holding company structure, adopted by banks such as ICICI Bank and SBI for raising capital for their insurance company subsidiaries, Mr Jain said: “We could look at a holding company structure as it provides an elegant solution to raise capital. But at the moment, there is no constraint for capital.”

Sustaining Growth

ING Vysya Life’s new business premium jumped 65 per cent to Rs 467.44 crore in 2006-07 from Rs 284.07 crore in the previous year. Mr Jain expects the company to sustain a growth rate of 65 to 70 per cent.

The market share increased from 0.8 per cent between July and December 2006 to 1.2 per cent in the period between January and June 2007.

Mr Jain said the company planned to increase its distribution footprint beyond the four States in the South where it currently has a significant presence. “We have 250 branches and are present in 185 cities. In six to nine months we hope to be present in 250 cities,” he said.