Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited ? a joint venture between two of India?s largest public sector banks, Canara Bank and Oriental Bank of Commerce, and HSBC Insurance (Asia Pacific) Holdings Limited, has entered into a strategic distribution tie-up with HSBC InvestDirect, one of India’s leading financial services organizations. HSBC InvestDirect provides a wide range of services such as security broking, depository services, investment advisory, distribution of financial products, and securities related financing to its customers.
HSBC InvestDirect currently has a strong network of 77 branches which will help Canara HSBC Oriental Bank of Commerce Life Insurance Company reach out to more than 1.3 lakh customers with need-based life insurance solutions. This is in addition to the existing customer base of 48 million of the three distribution partners ? Canara Bank, HSBC and Oriental Bank of Commerce and 4.6 million customers of two Regional Rural Banks (RRBs) ? Pragathi Gramin Bank and Shreyas Gramin Bank.
Announcing the distribution tie-up, Mr Harpal Karlcut, Chief Executive Officer, Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited, said, ?In addition to increasing our footprint across the country, the tie-up will benefit the customers of HSBC InvestDirect to whom the entire range of product offerings will be available. This will help them plan and achieve their financial goals at every stage of their lives.?
Mr Karlcut further added, ?Given that many Indians remain inadequately insured, our widened distribution will enable us to offer life insurance to a large section of the society. This is in line with our core strategy of strengthening the Company?s position as one of the leading long term players in the Indian life insurance market by developing strong relationships with the customers of our shareholders and their associated companies through tailored products and high standards of service delivery.
Following our distribution tie-ups with two Rural Regional Banks, we are confident that our relationship with HSBC InvestDirect will be a great success.?
In order to meet its expansion plans and support business growth, the life insurer?s three shareholders have infused capital of Rs 100 crore on May 25, 2010 ? increasing the total capital base to Rs 725 crore.
* Through HSBC InvestDirect Securities (India) Limited, in the capacity of a Corporate Agent.
Mr Karlcut said, ?The JV has strongly committed and aligned shareholders. With a capital base of Rs 325 crore, we were one of the most highly capitalized life insurance company at launch. The Company received a further infusion of Rs 200 crore in December 2008 and Rs 100 crore in December 2009. For FY 2010-11, the shareholders have already committed capital infusion to the tune of Rs 300 crore?
Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited closed FY 2009-10 with Rs 861.3 crore in gross written premiums, recording a growth of 189% over FY 2008-09.