The Hindu Business Line : Kotak Mahindra OM Life to beef up rural initiative

Pune, Oct. 17 Kotak Mahindra Old Mutual Life Insurance Ltd is strengthening its initiative in the rural areas, and will focus on deeper penetration in Maharashtra, Gujarat, Punjab, Haryana and Kerala.

The company is in the process of adding to its present network of 93 branches, and expects to open 150 more by March 2008. Over 50 per cent of these will be located in the rural areas, Mr Shekhar Bhandari, Vice- President, Sales, said.

The company’s strategy was to address the needs of the rural and urban customers. Towards this goal, it will leverage its relationship with the Kotak Mahindra Bank, whose branch-network will touch 200 during the fiscal, and Kotak Securities, present in 300 locations, to distribute life insurance products.

Mr Bhandari said that Kotak’s life insurance business was growing at a rate of 100 per cent year on year.

“For the year ended March 2007, our total business was Rs 971 crore, including Rs 550 crore in first year premiums. This year, we expect the first year premium to touch Rs 1,100 crore, and around Rs 1,000 crore in renewals,” he said, adding that the assets under management currently were around Rs 2,300 crore.

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