New Delhi, Aug. 28: HDFC Standard Life Insurance today defined the company’s business plans for the next four years. Outlining its strategy, Pankaj Seth, head of marketing, said that the insurer plans to infuse somewhere between Rs 400-500 crore by 2007 — the year it expects to break even.
“In order to be able to sustain long-term liabilities, it is important to back the company with sufficient capital periodically. Before we break-even in the next three to four years’ time, the company wants to have a sound capital base of close to Rs 500 crore,” he said.
For this financial year, the company has decided to increase its capital base by Rs 75-80 crore. HDFC Life, the second largest private insurer, recently made its first capital infusion worth Rs 50 crore in February.
Although the life insurance company has branches in Calcutta and Bhubaneshwar, it plans to open one in the state of Jharkhand as well. “This will help increase our hold and reach in the eastern part of India,” he said. Last year, almost 10 per cent of HDFC Life’s premium income was contributed by the eastern region.