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Exide Life Insurance, which is totally owned by the Raheja Group through battery maker Exide Industries, plans to recruit 18,000 new agents this year, its Managing Director and CEO Kshitij Jain has said.
This will be on top of the current tied agency force of 35,000 persons, who currently account for nearly 60 per cent of the business of this Bangalore-based private life insurer.
At least 25 per cent of the 18,000 new agents will come from North India, where the company wants to expand its business.
“I have no option but to up my game in North India, as it is too big a market to be ignored in the stage I am in right now. I have a presence (in North) that I want to build. I can grow only from strength to strength in this market,” Jain said.
Bancassurance tie-up
This life insurer has a bancassurance tie-up with ING Vysya Bank, which also has a branch network in North India. “As ING Vysya Bank expands its branch network, it will only help us”, he said.
Nearly 22 per cent of Exide Life Insurance’s business comes from this bancassurance arrangement.
Eyeing assets growth
Exide Life Insurance is looking to scale up from the current asset base of ₹ 7,500 crore to a level of ₹12,000-15,000 crore to have a long-term sustainable business.
This company is also targeting individual new business premium growth of 10 per cent this year.
“If the industry comes back to good growth this year, then we should grow even faster,” Jain said.
Net profit
In 2013-14, the company recorded a net profit of ₹ 53 crore, more than double the net profit of ₹ 23 crore recorded in the last fiscal.
Business expansion in the coming days will be focussed on East, followed by North and West. “South India will continue to be our core,” Jain said.
No foreign partner for now
Jain said Exide Life Insurance was not looking to induct any new foreign shareholder at least for the short-term, adding that the company was well capitalised for now.
“For the short-term, there is no real reason for Exide Life to be looking at inducting a foreign shareholder. In the short and medium-term, there is no reason to raise capital,” he said.
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