At a time when much of India Inc is grappling with a credit crunch, the fourth largest private insurer in the country Max New York Life (India) – a 26:74 joint venture between Max India Limited and Fortune 100 company – New York Life (USA), has increased its paid-up capital by Rs 350 crore to fund its expansion plans in this fiscal. ?This new infusion, approved by the board last week, will increase our paid-up capital to Rs 1,782 crore,? Rajesh Sud, CEO and managing director Max New York Life (India) said at a workshop on ?life insurance for you? in Kerala.
The funds will be deployed in the proportion of the joint venture between Max India Ltd and New York Life, he added. Max India plans to increase its paid-up capital to Rs 3,600 crore by the end of 2011-12. The capital will be used for increasing the company?s presence in the country by setting up more offices and employing more agents. ?At present, we have 475 offices, 61,500 agents and 15,200 employees,? Sud said, adding that the company plans to work on increasing its presence in the country. The company recorded a 65% growth in first year premium income between April to September this year.
Max New York Life is also planning to hire around 14,000 employees and 30,000 agents in the current fiscal. By 2011-12, the company hopes to appoint 3,50,000 agents and increase its staff strength to 25,000. It also plans to set up around 900 offices in urban cities and 700 offices in Tier-II and Tier-III cities, by then.
The company is the second private insurer that has decided to go ahead with its expansion plans this fiscal, despite the turmoil in financial markets. Recently, Metlife India Insurance Company too infused Rs 100 crore capital to fuel its growth. Accordingly, its paid-up capital has now gone up to Rs 1,580 crore. It has announced plans to hire about 2,000 managers as well as 30,000 advisors and double its network by March 2009.
Most insurance companies continue to be optimistic about their business plans because of low penetration of insurance and large insurable population in the country. It is estimated that by 2011, over 55% of the population will fall in the age group of 20 years to 60 years, and would require an insurance cover.
While addressing the media over phone from New York, New York Life?s chief investment officer and vice chairman, Gary Wendlandt said that the company might increase its stake up to 49% in New York Life Insurance (India), whenever the regulatory environment becomes conducive.
The travel for this story was sponsored by Max New York Life (India).