Max New York Life Sells 64,000 Policies in Ist Yr

New Delhi, Aug 25: | Updated: Aug 26 2002, 05:30am hrs
Max New York Life (MNYL) has clocked a sum assured of Rs 2,100 crore in its first year of operations. It sold over 64,000 policies during 2001-02, with a total annualised first-year premium of over Rs 43 crore and first-year premium income of more than Rs 38 crore.

As much as 70 per cent of its premium income came from whole-life policies.

CEO and managing director Anuroop Tony Singh told FE that the company would be raising its capital base to Rs 300 crore this financial year from the present Rs 250 crore. He asserted this stemmed from the shareholders confidence that it would be profitable in seven years, considering that it had exceeded expectations on all parameters since its launch in April last year.

The company settled 12 claims amounting to Rs 29 lakh and recorded a deficit of Rs 82 crore during the year. As for riders, the most popular were the accident death benefit and dread disease riders.

The company had identified the mid-market group insurance as a niche segment, targeting select large corporates, or to employees, customer groups or affinity groups. It may not show right now, but a few years down the line the embedded value of our products will come out. We have very good retention rates and good underwriting and the quality of our portfolio is very good, he claimed. Indeed, now other players were launching equivalents of Mahalife, etc., he pointed out.

For now, MNYL was focusing on enhancing infrastructure, launching innovative products to strengthen its offering of flexible solutions and launching group insurance and supplementary channels to reach a larger cross-section of society. It had 12 offices in nine cities currently, more than 2,500 agents and over 500 employees. It planned to enter at least three more cities by next year, apart from setting up a third office in the Capital.

It also proposed to enter into further alliances with non-government organisations and other groups to expand its rural and social business, and had even set up a separate rural cell to develop that segment.

As for bancassurance, Mr Singh said the company was in talks with a number of players, but it would make its moves only after the requisite regulations were in place.