New Delhi, Jan. 13: HDFC Standard Life Insurance, the first private life insurer, is set to infuse fresh capital of Rs 50 crore by the middle of March.
This is the first time, since its inception in December 2000, that the company is increasing its capital base from the existing Rs 168 crore.
HDFC Standard Life is a joint venture between HDFC and UK-based Standard Life. HDFC holds 81.4 per cent while Standard Life holds 18.6 per cent in the joint venture.
However, Standard Life also holds 10 per cent stake in HDFC, which has been calculated to imply that it holds a 7.4 per cent indirect stake in the company. Foreign holding in an insurance venture is capped at 26 per cent.
Manoj Jain of HDFC Standard Life insurance said: “An increase in our capital base defines our expansion in the life insurance industry. We hope to do well in coming years”.
Speaking about new products, he said: “Our existing product portfolio is large and satisfying. We are very happy with our sales.”
The private insurer has, however, not added any new product besides Bima Bachat, a plan basically for the rural population, during this year. But it plans to launch a children’s policy by February end in order to complete its full range of products.
The insurer has earned a premium of approximately Rs 70 crore for the period between April-December 2002. It has also sold 50,000 new policies and increased its sum assured by Rs 2,600 crore for the same period. “We have been able to renew 95 per cent of the policies that we issued earlier,” Jain said.
By adding two cities — Bhubaneswar and Faridabad — to its list of branches last week, it has increased its network to 36 cities. The insurer plans to add approximately five cities.