Comments
DHFL Pramerica Life Insurance (DPLI) is targeting a 28-30 per cent compounded annual growth rate (CAGR) in new business premium over next five years, its Managing Director & Chief Executive Officer Anoop Pabby has said.
As against new business premium of ₹ 578 crore achieved in 2014-15, DPLI is targeting a new business premium of about ₹ 750 crore for current fiscal, Pabby told Business Line here in an interview.
From a small net profit in 2013-14 (break-even year), DPLI has in just ended fiscal 2014-15 recorded a net profit of ₹ 45.8 crore.
Encouraged by its stronger financial performance in the fiscal 2014-15, this private life insurer is now open to acquisitions for growth.
“We are willing to look at inorganic growth so long as the proposal is agreeable to our two principal shareholders. The stronger financial position now can allow us to look at acquisitions for growth”, Pabby said.
DPLI is currently a joint venture between Dewan Housing Finance Corporation Limited (DHFL) and the U.S.-based insurance major Prudential Financial Inc (PFI).
While PFI through its fully-owned subsidiary Prudential International Insurance Holdings holds 26 per cent in DPLI, the remaining 74 per cent is held by DHFL and its two promoter entities.
Pabby attributed this jump in bottomline for 2014-15 to the benefits arising from DHFL network besides cost rationalisation efforts.
“We were able to leverage on the DHFL network to improve sales. Productivity improvement within the organisation also helped. We also paid more to those performed and off boarded the freeloaders”, Pabby said.
DHFL and its two promoter entities had in late 2013 acquired 74 per cent stake of realty major DLF in DLF Pramerica and renamed the company as DHFL Pramerica Life Insurance (DPLI).
Meanwhile, Pabby confirmed that the two principal shareholders - U.S.-based PFI and DHFL - are in talks post the new insurance law allowing foreign investment up to 49 per cent in Indian insurance companies.
Indications are that PFI may increase its holding in DPLI to 49 per cent, the maximum foreign investment limit now permitted under the Indian law.
This is even as the joint venture agreement allows PFI to go up to 50 per cent in DPLI.
On branch expansion, Pabby said that DPLI has 66 Offices in India and plans to open 29 more offices by end of 2015-16, of which 5 offices will be small service centres.
srivats.kr@thehindu.co.in
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.