The Hindu Business Line : Max NY Life investing in expansion

Kovalam, Nov. 24 Max New York Life Insurance Company (MNYL) is planning to invest Rs 1,818 crore in the country by March 2012, of which Rs 350 crore will be infused by the end of this fiscal, according to Mr Rajesh Sud, Chief Executive Officer and Managing Director of the company.

The fresh investments will raise its paid-up capital to Rs 3,600 crore from Rs 1,782 crore at present.

Addressing the press at a conclave here recently Mr Sud said, “The new investments will fund MNYL’s expansion plans of raising the number of offices in urban regions to over 900 and in emerging markets to over 700 by 2011-12.” The life insurer currently has 475 offices in the country.

The company plans to add 9,800 employees and 2,88,500 agent advisors during the period, raising its employee strength to 25,000 and agency base to 350,000, he said.

MNYL also plans to launch its small ticket insurance product Max Vijay on a pan-India basis in the next six to nine months, Mr Sud said. The policy is currently sold in 15,000 retail outlets in Uttar Pradesh and Andhra Pradesh. While existing distribution allies such as Indian Oil Corporation and Triveni could be roped in, the company is also considering new distribution channels such as ITC e-Choupals for selling the policy, he said.

The innovative policy designed for the underserved urban and rural population may also be replicated by the foreign stakeholder New York Life for emerging markets such as China and Mexico, he said. Max New York Life is a 74:26 joint venture between Max India and New York Life.

For its health insurance business, Max India plans to invest an initial capital of Rs 100 crore along with its partner the UK-based BUPA Finance Plc in the joint venture company Max Bupa, Ms Kirti Madhok Sud, Director, Corporate Support, Max India, said, adding the investments could increase to Rs 400-450 crore over the next three years. “The target is to start the market rollout process by the fourth quarter of 2009,” Ms Sud said.

Mr Gary Wendlandt, Chief Investment Officer, New York Life, said in a telephonic conversation from New York that the company was aiming at continuing its investments in private equity in sectors such as biotech, paper and infrastructure in India. The insurer has invested $450 million in private equity in the last eight years in the country. The company may also look at opportunities of increasing stake in MNYL once the FDI limit is raised, he added.

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