Comments
The current bearish market has brought down the total asset under management for Canara HSBC OBC Life Insurance Co Ltd by about Rs 500 crore from that on March 31, 2015.
Gaurav Seth, Chief Financial Officer of the private life insurer, said here on Thursday that the overall AUM of the company (including shareholders’ fund) was Rs 9,300 crore as on January 31 this year down from Rs 9,800 crore on March 31 last year.
A large portion of the company’s investments was in equities, which has made the difference. Of the total AUM about Rs 6,700 crore was in equity linked.
“In the 10 months this financial year we have collected new business premium worth Rs 527 crore, showing a 60 per cent growth over the comparable period last fiscal,” Seth said.
There was hardly any default in terms of premium renewals at Rs 893 crore during the first 10 months of this fiscal.
The CFO said he expects the net profit during the current financial year to grow by 10-15 per cent over Rs 103 crore recorded last fiscal.
New productsSeth said the insurer was designing a new fixed health benefit linked life insurance product. “Currently we have undertaken a customer need analysis with the help of three promoter banks. The process of preparation is on. We hope to come out with new product some time in the second half of 2016-17”, he explained.
It has also sought approval for two new conventional products – one child plan and the other an endowment plan – from Insurance Regulatory and Development Authority of India.
“The approval for Child plan is expected this month. The other would follow”, he added.
The insurance company, which moves exclusively the bank assurance route, would see addition of 3,000 specified bank personnel selling their products in the year or so. Currently some 5,000 Canara Bank, Oriental Bank of Commerce and HSBC staff are dedicated for selling insurance products through branches.
Moreover, the insurance company is also increasing its marketing staff strength from the present 350 to 850 to support its corporate agents (banks).
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.