IndiaFirst Life pumps in Rs120cr fresh capital

Private insurer IndiaFirst Life Insurance Co Ltd - a joint venture between the Bank of Baroda, Andhra Bank and UK-based Legal & General - is planning to infuse around Rs120 crore capital this fiscal, adding to its current paid-up capital of Rs430 crore.

Part of the proposed infusion will go to support the financial planning centres (FPCs) that the company is setting up in various parts of the country.

After launching its first FPC in Chennai, IndiaFirst managing director and chief executive P Nandagopal said, "We are planning to infuse Rs120 crore in the first quarter (April-June) taking the total capital to Rs550 crore to fund our expansion plans, including setting up of financial planning centres (FPC), and solvency capital requirements.

So far, the company has infused Rs430 crore in two phases, starting with Rs300 crore and later adding another Rs130 crore. The capital infusion would be from the promoter bankers, Nandagopal said.

Bank of Baroda and Andhra Bank hold around 44 per cent and 30 per cent stakess in the company respectively, while UK-based risk, wealth and investment company Legal & General owns the remaining 26 per cent, the upper limit at which foreign investors' stakes are capped in the insurance sector.

Meanwhile, the company launched its first FPC in Chennai today, and plans to set up a total of 12 centres in various major cities in the next two to three months. It would offer a range of services including new business application processing, policy servicing request processing, advisor licensing processing, advisor and sales training, claim intimation processing and document collection and record management for business applications.