Money & Banking

Reliance Nippon Life eyes entry into top 5 club

KR Srivats New Delhi | Updated on June 07, 2019 Published on June 07, 2019

Ashish Vohra, ED & CEO, Reliance Nippon Life Insurance

Will take up network expansion after three years to achieve this aspiration: CEO

Reliance Nippon Life Insurance, a non-bank-promoted private life insurer, aspires to be among the top five in the life insurance industry’s pecking order, a top company official said.

The life insurer is currently ranked eighth in the industry on total premium basis.

“I certainly want Reliance Nippon Life to be in the top five. For this to happen, several of our innovations have to succeed. There is a strategic intent to be a large player and within the top-five league. It’s too early to commit to a timeline,” Ashish Vohra, Executive Director & Chief Executive Officer, Reliance Nippon Life Insurance, told BusinessLine.

Vohra said that the medium-term strategy to reach this aspiration (get into the top five) will be network expansion and take the number of branches from 750 to 1,500 in the fourth or fifth year from now.

Reliance Nippon Life Insurance is not looking at physical branch expansion for the next three years.

“Beyond the third year, we will look for network expansion. That will require capital. It will take us the next two years to stabilise the big changes that we have already done,” he said.

Reliance Nippon Life insurance is currently capitalised at ₹1,196 crore.

Vohra said that the life insurer wants to continue to grow beyond industry (faster than industry). The company grew 21 per cent in 2018-19, against the industry growth rate of 12 per cent.

“The clear aspiration is that we want to beat the industry — with banca or no banca,” he said.

Reliance Nippon Life Insurance, which does not have any large bancassurance relationships, is quite confident that this will not be to their disadvantage. Vohra said that the company would strive to increase its banca play (currently accounting for 5 per cent of overall business) and tap emerging opportunities in the public sector banks space. Last year, it had entered into a bancassurance tie-up with Bank of Maharashtra.

Persistency

Vohra said that the life insurer, which has made rapid strides in 13-month persistency in the last three years, will now look to get closer to the levels of industry leaders.

“We have reached 78 per cent from 59 per cent three years back. It’s one of the big moves. We are still not best in class. My desire for Reliance Life this fiscal is to be in the top class league. We need to cover the distance from 78 to 84 this year,” he said.

Vohra also said that Reliance Nippon Life has no plans to raise capital for the next three years.

Published on June 07, 2019

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.