Chennai, March 12 : Royal Sundaram Alliance Insurance Company Ltd, a 26:74 joint venture between the Royal & SunAlliance of the UK and the Chennai-based TVS Group, has rolled out its personal and commercial insurance covers in Chennai on Monday. The joint venture, first among the private players to kickstart insurance foray, expects to do business worth Rs 120 crore in the first full year of operation. It would start making cash profits within five years and is eyeing a 50 per cent annual growth initially. Addressing a press conference after the official launch of the company's commercial operations here, Mr GK Raman, chairman, Royal Sundaram said the alliance is bullish on the Indian market and is expecting revenue from both new business to be generated by the company, as well as taking a slice out of business from the existing players. "We see growth from both segments. We are hopeful of consolidating our business operations soon", he said.He said the company is offering a balanced portfolio of commercial and personal insurance policies to the consumers via a number of easily accessible distribution channels. The personal lines of products include motor, health, travel, personal accident as well as home covers, while commercial lines include fire, marine, engineering, public liability and product liability covers, he said.
Mr Mikky Brigg, managing director, Royal Sundaram said the Indian market offers tremendous potential for growth. He said as per the Irda regulations, the Royal & SunAlliance has invested 26 per cent in the Rs 101-crore equity of Royal Sundaram. He said, besides having its headquarters in Chennai, the company has opened two regional offices in New Delhi and Mumbai and will open offices in cities like Bangalore and Kolkata as and when business picks up. He said the company would also leverage the 95-odd distribution outlets and offices of Sundaram Finance to market the products.
He said, Royal Sundaram, currently, has a staff strength of 75 professionals, which would be doubled in the next one year. He said the company would be distributing its products directly and through corporate agents and brokers. He said initially, the company would offer only market-accepted products, but would soon roll out a host of innovative products once the Irda gives the green signal.
Mr Brigg said Royal Sundaram is planning to consolidate its business through world-class technology and customer care, which would make it different from other companies operating in the sector.
According to Mr Robert V Mendelsohn, group chief executive, Royal SunAlliance, with its vast experience and technology from around the world, his company would add value to the joint venture by bringing in its expertise, technology and products. He said the Royal SunAlliance is not planning to repatriate its share of profits from the joint venture; rather it would invest more capital in the venture in tune with the growth in business as permissible under the Indian law.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
