Money & Banking

IndiaFirst Life will pump in Rs 125 cr to ramp up distribution base

Our Bureau Chennai | Updated on March 12, 2018 Published on May 11, 2011

Dr P. Nandagopal, MD and CEO, IndiaFirst Life Insurance, at a press conference in Chennai on Wednesday. — Photo: Bijoy Ghosh   -  Business Line

To fund its growth plan for the year, IndiaFirst Life Insurance expects to infuse Rs 125 crore capital this quarter. The one-and-half-year-old insurer with 350 agents currently plans to ramp its distribution base.

Addressing a press conference, Dr. P Nandagopal, Managing Director and CEO, IndiaFirst Life Insurance, said the company would add about 4,500 agents this year and double its training to bank employees to 5,000 to sell insurance.

Bank of Baroda and Andhra Bank hold 44 per cent and 30 per cent stake, respectively, in the company. UK-based risk, wealth and an investment company, Legal and General, holds the remaining 26 per cent. Currently, the capital base is at Rs 430 crore.

The company clocked a premium income of Rs 704 crore for 2010-11 and aims to collect Rs 1,400 crore for the current financial year. Bancassurance channel, bank employees selling insurance, contributed about 95 per cent of its premium income.

The company has been able to keep its operational cost low at 19 per cent (of total premium income) by riding on the branch network platform of its promoters, Bank of Baroda and Andhra Bank.

Both banks have about 4,500 branches across the country.

The company's own branches or offices, called financial planning centres, are at 12. Another 10 FPCs are expected to be added where customers can walk in and talk to relationship managers and get financial planning advice.

IndiaFirst Life is yet to take full advantage of its promoters' network.

The insurer has its presence only in 2,000 branches. Dr Nangopal said moving forward the company would aim to train at least two employees in each branch to sell insurance.

Published on May 11, 2011
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