Jaipur, April 28: Private life insurance firm Max New York is planning to garner a 6 per cent market share by 2011.
The company will infuse around Rs 1,600 crore of fresh capital. The company’s paid-up capital as of March 2008 is Rs 1,032 crore, which is expected to increase to Rs 2,650 crore by 2011.
Max New York is targeting a four-to- five-time increase in its first premium income (FPI) in three years. The insurer recorded an FPI of approximately Rs 1,598 crore for 2007-08. The company is a 74:26 joint venture between Max India and the US-based New York Life (NYL).
According to Max New York Life CEO Gary R. Bennett, the company’s contribution to NYL’s operating revenue from international business on an ownership basis is likely to touch 15 per cent by 2011.
“In 2007, NYL’s operating revenue from international business on a ownership basis stood at $2 billion. This is expected to increase to $3.5 billion and India will contribute about 15 per cent to this figure by 2011,” said John Harrison, vice-chairman & CEO (Asia Region) of New York Life International.
India contributed $128 million to NYL’s operating revenue from international business on an ownership basis.
Operating revenue is the sum total of the first premium income, single premium and renewal income. New York Life considers part of the premium income, which is proportionate to its holdings in its ventures.
For example, it considers 26 per cent of operating revenue from its venture in India while calculating its international business revenues.
Max New York Life has sold 2.3 million policies and operates in 200 cities. It aims to have more than 15 million policyholders and more than two lakh agents in the next three years.
The company also wants to expand its presence to more than 500 cities and have around 800 offices. It also plans to increase its number of employees to over 25,000 from 7,500 now.
Bennett said there would be a rise in the number of alternate channels and partnerships, rural distribution and alliances for marketing. The company is also strengthening its portfolio with health and retirement products.
