Calcutta, June 7: Birla Sun Life Insurance Company Ltd, the joint venture between the A.V. Birla group and Sun Life Financial Services of Canada, plans to shore up its capital base from the existing Rs 200 crore. Confirming the move, chief financial officer Peter Akers said fresh capital infusion will be done as and when the company requires it. Akers, however, remained non-committal about how much capital to be pumped into the company. He pointed out that fresh capital infusion, which will be needed to fund future expansion programme, will be made soon.
The company’s current capital base is substantially lower than most competitors writing similar volume of new business. The company has set a target to increase its premium income to Rs 450 crore during the current financial year from Rs 170 crore of last year.
“Our target for 2003-04 is to sell over 1.80 lakh policies with a premium income of Rs 450 crore and to achieve it we are going for gradual expansion of branches and insurance advisors,” he said
The company had sold about 75,000 policies with sum assured of Rs 6018 crore and new premium income of Rs 170 crore in 2002-03.
The company claims to be the number two among private insurance companies in the country and is eyeing the top slot.