New Delhi, June 28: The south-based AMP Sanmar Life Insurance company will pump in Rs 25 crore as fresh capital early next year. The insurer will also soon introduce group pensions and a group gratuity product. “We intend to raise our existing capital base by adding Rs 25 crore. This will be our first infusion since we commenced operations and it will take the company's capitalisation to Rs 150 crore,” S.P Mony, CEO AMP Sanmar Life Insurance told The Telegraph.
The private insurer plans to enter eastern India in the first half of calendar year 2004.
At present, AMP Sanmar has three bancassurance tieups with Kerala-based district cooperative banks. These include Manjeri Cooperative, Perunthalmanna Bank and Nilambur Bank.
Mony said, “By the end of the next month, we will tie up with other few banks which will boost the sales of our products through the bancassurance route. At present, we have approximately 42 offices spread across whole of southern India and about seven to eight in the western region. We intend to open another 25 offices in the west by the end of next month.”
In early March, the insurer tied up with the Shriram group as its corporate agent. In the south, Shriram Chit Funds (a group company) will distribute its products while in the west, Shriram Transport Finance will sell its policies.
The Shriram group has about 1,400 outlets across the country and a customer base of over 32 lakh people. The private insurer has about 2,200 agents which is expected to go up to 3,500 by year-end.
Though a late entrant in the insurance business, Mony had earlier said that the company hopes to beat the competition by going to “second and third level towns and villages faster than others.”
AMP Sanmar is a 26:74 per cent joint venture between the Australian financial services major, AMP Limited and south-based industrial group Sanmar. AMP is a 150-year-old company having businesses in insurance, asset management and financial planning.
The joint venture life insurance company has a strong base in Andhra Pradesh, Karnataka, Kerala, Pondicherry, Tamil Nadu, Maharashtra and Gujarat.
It has six basic policies in its product portfolio. These include-Yuva Shree (child protection assurance), Raksha Shree (term assurance for entrepreneurs), Dhana Shree (money back assurance), Nithya Shree (whole life assurance), Subha Shree (a special endowment policy) and individual pensions.