The Hindu Business Line : IDBI Fortis to strengthen bancassurance network

Kolkata, Nov. 23 IDBI Fortis Life Insurance Company is looking at strengthening its bancassurance network as its stakeholders IDBI Bank and Federal Bank plan to add new branches next year.

Giving this information to media persons on the sidelines of a conference here on Monday, Ms Vishakha R.M., President, Bancassurance, IDBI Fortis, said, “Currently 60 per cent of our premium income comes from the bank tie-up route.” IDBI Fortis Life Insurance Company is a 48:26:26 joint venture between IDBI Bank, Federal Bank and the Belgian insurance group Fortis.

According to industry sources, IDBI bank currently has about 680 branches in India and plans to add nearly 150 more next year. The Federal Bank has nearly 620 branches in the country and is looking at adding 100 more. These expansion plans, however, depends on RBI approvals.

IDBI Fortis Life targeted to double the agency size to 15,000 by March 2010, its Managing Director and Chief Executive Officer, Mr V. Nageswara Rao, said. “Our strategy would be to come up with innovative products,” he said, adding that the company planned to launch a universal life policy, a group policy and a health insurance policy in 2010-11.

The company has clocked 27 per cent growth in first year premium and 74 per cent growth in gross premium as on September this fiscal, Mr Rao said. It collected Rs 318 crore gross premium in the first full year of operation in 2008-09. As on September this year, it collected Rs 200 crore preium, he said.

Of its different funds, the Asset Allocation Fund has registered the highest returns (35 per cent) in the last six months, Mr Rao said. The fund switches allocations between debt and equity in accordance with market conditions.

The company has a capital base of Rs 450 crore. It would not require any immediate capital infusion, Mr Rao said.

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