The company plans to sell 1,80,000 policies this year with corresponding annualised new business premium of Rs 450 crore, growth of over 165 per cent, BSLI CEO Nani B Javeri said. BSLI, claiming second place among new players, expected to earn a premium income of Rs 190 crore through its direct selling force, Rs 185 crore through the Birla group companies and Rs 75 crore through alternative channels like tie-ups with banks.
It netted a premium income of Rs 170 crore last fiscal, up 385 per cent from Rs 36 crore in 01-02. Mr Javeri said, BSLI would try to be the first private player to achieve the breakeven. Life insurance companies could achieve breakeven only after five years of operations due to initial losses and the need for additional capital with an increase in business. Though BSLI had ticked growth in premium income, it had brought in additional capital of Rs 20 crore only this year. With this addition, the total capital stands at Rs 200 crore. Enthused, Mr Javeri said BSLI has the lowest capital usage in the industry, hence lower infusion of capital. Stressing on strenthening the bancassurance mode, he said BSLI was in talks with some public sector banks and entered into agreements with Citibank, Deutschenk, IDBI Bank, Catholic Syrian Bank, Development Credit Bank, Bank of Rajasthan and Bank Muscat. A 74:26 joint venture of AdityaBirla Group and Canada-based Sun Life Financial Services and presence in 16 cities with 22 offices, it has over 350 agency managers and 5,000 insurance advisors. It earned 50 per cent of its premium income through its direct selling force, 24 per cent through the alternate channels and 26 per cent through its group concerns in 02-03.