The Hindu Business Line : Max New York Life targets Rs 1,000-cr new biz premium

MR GARY R. BENNETT, Managing Director & CEO, Max New York Life, with Mr Debashis Sarkar, Director, Marketing, Max New Life Insurance Company, at a press conference in Mumbai on Friday. — Paul Noronha

Mumbai , July 7

Max New York Life has set a target of Rs 1,000 crore as new business premium by the end of the current fiscal. Mr Gary Bennett, MD and CEO, Max New York Life, said the company hoped to sustain triple digit growth in the next two to three years and break even by 2008.

In 2005-06, the company registered a growth of 102 per cent and touched Rs 471 crore of new premium, against Rs 233 crore in the previous year.

Max New York Life has a capital base of Rs 587 crore and plans to infuse around Rs 350 crore by the end of March 2009. "MNYL is one of the highest capitalised life insurance companies in India and by 2009, the company's capital base will be close to Rs 1,000 crore. The capital will be deployed as and when required for branch expansion, agency distribution and to sustain growth," said Mr Bennett.

Business Mix

The cumulative sum assured stood at Rs 28,000 crore in 2005-06 (Rs 16,500) while the average premium per policy inched up to Rs 19,000 (14,000). In terms of the company's business mix, ULIPS contributed 50 per cent of the premium in the last fiscal.

Mr Bennett said the company hoped to increase contribution of business from alternate channels to around 40 per cent from 25 per cent in 2005-06. MNYL hopes to leverage bancassurance by picking up equity stake in a bank and the company is currently in talks with a few banks, he said. The company is also exploring the opportunity of setting up a joint venture distribution company with a bank.

On the possibility of New York Life entering AMC business in India, Mr Bennett said the company was currently studying the prospects of entering this segment here.

"We are conducting research and it is very much on the horizon. But it wont happen this year," he said.