Edelweiss Tokio Life Insurance Company Ltd (ETLI), a 74:26 joint venture between Edelweiss and Japan’s Tokio Marine Group, today said that it aims to insure five million lives in the next five years.

As a recent entrant to the Indian life insurance market, ETLI is setting up a branch network, with initial focus on Western and Northern India. The joint venture company, which is capitalised at Rs 550 crore, opened its 13th branch in the country and first in Delhi today.

Capital infusion

Plans are afoot to bring in additional capital of Rs 200 crore in the third year of operations to fund business growth. “We feel that this additional Rs 200 crore along with the initial capital of Rs 550 crore would be sufficient for the first five years of operations.

Both the joint venture partners have together committed to a capital of Rs 2,000 crore for this venture in the first 10 years," Mr Jun Hemmi, Director, ETLI, said here on Tuesday.

Branch network

On branch network expansion, Mr Yash Prasad, Chief Agency Officer, ETLI, said that the company plans to launch nine more branches during the current financial year, totalling up to 22 branches — all in North and Western India.

The company has already launched operations in Gujarat, Maharashtra, Chandigarh, Punjab and Haryana. Next financial year also the company plans to set up 22 branches, including some in the South and eastern region.

“We want to have 64 branches by 2014 and 75 branches by 2015. We want to be a pan-India player," Mr Prasad said.

ETLI got its licence in May 2011. Since the start of its commercial operations in July this year, the company has sold 1,000 insurance policies — mostly traditional policies, Mr Hemmi said. The company wants to build an agency force of 50,000 persons. On not having bancassurance as a distribution channel, Mr Hemmi said that the company does not see this as a disadvantage, but noted that it was open to tie-ups.

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