New Delhi, Feb. 7: The Chennai-based AMP Sanmar Life Insurance company plans to infuse fresh capital worth Rs 25 crore in a few months.
“We propose to raise our capital from the current Rs 125 crore to Rs 150 crore. Capital infusion depends on the ability of the insurers capacity in expanding its business in near future,” S.P. Mony, chief executive officer of AMP Sanmar told The Telegraph.
“An insurer should not make huge investments just for the sake of it. It all depends on the solvency margin of the company,” he added.
This is the first time after the insurer started its operations in March last year that it proposes to increase its paid-up capital.
AMP Sanmar is currently operating in 42 cities and towns situated mainly in southern and western India. It plans to enter eastern India by the end of the year.
Mony said “we have plans to start operations in eastern region in the fourth quarter of the calendar year.”
On bancassurance, Mony said it has tied up with the Shriram group of Chennai.
At present, the insurance company has around 1,500 agents selling its policies. The subsequent tie-ups with banks and companies will further leverage its sales and enhance its distribution network.
Outlining its performance, Mony said “we have sold three major group insurance policies to private companies who were earlier insured with the big giant, Life Insurance Corporation of India.”
AMP Sanmar is a 26:74 joint venture between 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 currently has a strong base in Andhra Pradesh, Karnataka, Kerala, Pondicherry, Tamil Nadu, Maharashtra and Gujarat.
To start with, the life insurer has designed five basic policies to complete 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) and Subha Shree a special endowment policy.