Birla Sun Life plans to recover market share

Kolkata: Birla Sun Life Insurance Company plans to double its capital base to halt its declining market share and attain 100 per cent business growth in 2007-08.

The company is targeting over Rs 2,000 crore in first premium income during the current fiscal up from Rs 953 crore recorded last year.

The company is also aiming at doubling the total premium revenue from Rs 1,746 crore recorded on March 31, 2007. This requires doubling the company's capital base of Rs 672 crore as on March 31, 2007.

As part of its growth plans, the company would set up 210 additional branches within the first half of the current fiscal and also increase the number of its agent advisors to one lakh in the current fiscal from the 58,000 now.

Birla Sun Life launched the Gold Plus Plan - a unit linked insurance plan. Under the plan, the policy holder can pay a premium of Rs 10,000 for three years. The plan offers 100 per cent equity exposure. People between the age groups of 18 to 70 years can invest their money in the plan.

The company hopes these steps would help it recover its market share from the current five per cent. Three years ago, the company had a market share of 12 per cent.