Sun Life to invest more in Indian venture
By Our Banking Bureau | 25 Apr 2002
Much
of this additional investment will go towards the life
insurance business in India, Birla Sun Life Insurance,
currently a part of the joint venture with the Aditya
Birla group.
Birla Sun Life Insurance, which completed one year of
operation, has a total sum assured in excess of Rs 1,600
crore. It has 12 branches in nine cities and is planning
to increase its coverage to 22 branches in 14 cities by
August 2002.
In one year in
India, we have done more new sales in insurance as compared
to Hong Kong, where we are present for the last 100 years,
says Prieur. We would like to treble our business during
the current fiscal, says Birla Sun Life Insurance chairman
and managing director Nani Javeri.
Javeri, however, did not divulge the figures for the previous
fiscal. Birla Sun Life will launch fresh unit-linked
packages this year. Says Prieur: We are committed to
infuse more capital into the life insurance
business, which has been growing quite well. Life insurance
is a capital-intensive business, necessitating fund infusion
until book profits start to show in six-to-seven years.
Sun Life, which is currently entering into a 50:50 joint venture arrangement with the China Everbright group to make its foray into life insurance in China, hopes to increase its stake in the Indian joint venture from 26 per cent to 50 per cent as and when the government lifts the cap on foreign investments.