Max New York Life targets Rs 2,000-cr new biz premium

Private insurer Max New York Life is hoping to turn profitable in 2010-11 on the back of its high product performance and growth in renewals.

“We are expecting to turn profitable in FY11, following increase in new product sales and rise in renewals, which grew by almost 25 per cent,” the Max New York Life Director and Chief Marketing Officer, Ms Anisha Motwani, told PTI here.

During April-February 2010-11, the renewals stood at Rs 3,238 crore, a growth of 26 per cent compared to the year-ago period. Similarly, total new business premium collections witnessed a 12 per cent growth at Rs 1,789 crore.

“We expect to collect over Rs 2,000-crore new business premium in FY11,” Ms Motwani said.

“We are planning to focus on mass affluent segment representing 80 per cent of new premium and whose average disposable income may to go up to Rs 25.3 trillion in 2015 from Rs 6.7 trillion in 2005.

Going forward, the 10-year-old company, will also stress on long-term savings and protection with a minimum tenure of 10 years,” she said.

It will also focus on multi-channel distribution and quality agency distribution, she said.

The private insurer, which focuses on traditional offerings, plans to add six new products this year with a 50:50 split between traditional and ULIPs to its existing 21 offerings. Besides this, it also has six products offerings and seven riders in group insurance business.

Max New York Life Insurance is a joint venture between Max India Ltd and New York Life International, the international arm of New York Life and a Fortune 100 company. Total capital infused is Rs 1,976 crore, she said, adding that there will be no additional capital required for the business.

The company has 521 offices spread across 389 cities across the country with about 7,500 employees.

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