Reliance Life Insurance is seeking an exclusive bancassurance partnership with a domestic bank of critical size in return for a minority stake, a top company official said.

In March 2011, the private sector life insurer had sold 26 per cent stake to Japan's Nippon Life Insurance Company for Rs 3,062 crore ($680 million).

For the bancassurance tie-up, the promoter of Reliance Life — Reliance Capital Ltd — will divest a small portion of its 74 per cent stake.

Outlining the company's business plans at a media offsite in Hong Kong, Mr Malay Ghosh, Executive Director and President, Reliance Life Insurance, said it will turn profitable in the current financial year.

The private sector life insurer, which began its operations in 2005 after acquiring Chennai-headquartered AMP Sanmar Life Insurance Company, is eyeing a profit of over Rs 300 crore in 2011-12.

Business strategy

The company has drawn up plans to revisit its business strategy this fiscal by focussing on product mix, new distribution model and increased rural penetration.

“We are also exploring opportunities in the health insurance and pension segments. Our focus will be more on protection products this year,” said Mr Ghosh.

The company's gameplan is to sell traditional products for the low premium segment and ULIPs and complex products for the higher premium segments, he added.

Reliance Life is also looking to double its Assets Under Management (AUM) in the next three years. It had an AUM of Rs. 17,855 crore as of March 2011, a 31 per cent growth from FY10.

The company has been making consistent monthly profits since September 2010 and has not received any capital infusion since August 2010, said company officials.

For increased rural penetration, Reliance Life plans to launch a Rural Career Agent programme. Under this initiative, the company will recruit 6,000 agents on a fixed income structure and will give them a stipend during the training and induction period.

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