Money & Banking

Reliance Life to focus on traditional products

KR Srivats New Delhi | Updated on January 24, 2018

Anup Rau, CEO

Reliance Life Insurance Company (RLIC) will focus on selling more traditional products this fiscal to drive growth and not look to aggressively push unit-linked insurance plans (ULIPs), its Chief Executive Officer Anup Rau said.

The aim will be to grow the share of traditional products in the overall business mix to 85 per cent from the current 77 per cent level, Rau told BusinessLine.

“We are looking for stable, consistent and long-term growth and, therefore, do not want to encourage ULIPs, which deliver volatile growth linked to equity markets,” he said. The company has taken a conscious decision to push traditional products as it sees such a strategy as more sustainable, Rau said. RLIC, which has no presence in about 48 per cent of the market that is accounted for by the bancassurance channel, has for the fourth year in a row reported net profit in 2014-15 at ₹135 crore. However, this is lower than last year’s level, primarily due to the company’s decision to make greater allocation towards “reserves”, say company officials.

For 2014-15, RLIC recorded new business premium income of ₹2,070 crore and total premium of ₹4,621 crore with a total of 4,79,078 policies issued. In line with its focus on promoting long-term products and disciplined savings habit, two-thirds of its business comes from 10-plus pay term. The aim will be to take this to three-fourths, Rau said.

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Published on June 04, 2015
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