"To begin with we will have major focus on the rural market and few metroareas," said Stuart Purdy who replaced Sandy Davidson as the chief of CGU'slife insurance operation in Delhi.

Speaking to The Financial Expres, Purdy, who was shifted from Ireland, saidthat that the company would target the rural market not because of themandatory provisions of Insurance Regulatory & Development Authority, but asa sound business proposition.

``We have enough products to satisfy the rural masses,'' said Purdy, addingthat the company was committed to providing greater returns than it has beenpossible so far in the domestic market.

``Our focus will be higher returns for the policy-holders and good customerservice which will make us a distinct company,'' Purdy asserted.

The company will create a large agency network and will utilise the besttechnology for implementing its business plan. Purdy hinted at floating amutual fund as an investment avenue for the life insurance operation at alater stage. At present, 50 per cent of the current business of the LifeInsurance Corporation (LIC) comes from the rural area.

Meanwhile, in a top-level change, CGU Insurance has appointed, Nick Helms asthe general insurance representative in India. Helms has replaced JohnBrice, who is being shifted as the head of group's operation in Japan.

Helms is the designated chief of the proposed joint venture company with theWadia group for the general insurance operation. The company intends toapply to the IRDA for a licence to transact general insurance business whenregulations permit. CGU recently announced a proposed merger with NorwichUnion, which will create the UK's largest insurance group with a worldwideincome of 26 billion pound and an asset management business of around 200billion pound under management.

CGU itself was born out of a merger between General Accident and CommercialUnion some time back. The group had a 117-year presence in India prior tonationalisation of the general insurance in 1972 and was the largestinternational insurer in the country, measured in terms of compensation paidby the Government.