Max New York Life to pump in more capital

New Delhi, Nov 28 | Updated: Nov 29 2006, 08:39am hrs
Max New York Life, a joint venture between Max India and New York Life, will infuse additional capital in the next two years to increase its paid up capital from the current Rs 617 crore to Rs 1,000 crore to facilitate expansion of the business. It is also planning to tie up with a general insurance company in a bid to enter the micro insurance sector.

Gary R Bennett, CEO and managing director, Max New York Life, said that depsite the large number of challenges, the micro-insurance sector would offer great opportunities. We are in the early stages of talks with a general insurance company for a tie up for the micro insurance foray, he told mediapersons here. He said that the company is studying the various aspects of the sector in terms of products, pricing, packaging. He, however, did not mention when the insurer intends to start the venture.

Bennett added that the semi-urban and rural areas would push growth in the insurance sector. He pointed out that the rural piece is an opportunity and not a liability.

Sy Sternberg, chairman and CEO, New York Life Insurance, who is currently in India, said that the Indian market is one of the fastest growing markets for the company. He pointed out that the rising income would push consumers towards buying insurance products.

Sternberg added that the increased foreign direct investment level would further deepen the insurance sector.