Pvt insurance players likely to get Rs 2,500-cr after FDI limit hike

New Delhi, March 21 | Updated: Mar 22 2006, 06:14am hrs
The private life insurance sector in India, with a total paid-up capital of about Rs 5,400 crore at present, is likely to get a fresh infusion of Rs 2,500 crore once the foreign direct investment level is raised to 49% from the current 26%. This is assuming that the Indian partners maintain the existing level of investments and the foreign partners do not buy out the stake of the Indian entity.

Out of the 13 private sector life insurance players, Reliance and Sahara are totally Indian owned. ICICI Prudential has a total paid up capital of Rs 1,185 crore while Max New York Life has Rs 526 crore and Aviva Life Insurance has Rs 459 crore.

Most companies are looking to increase their capital base further in the near future, to keep pace with expansion plans.

There is need for further investments and the increase in the FDI limit would only enhance growth in the sector, an analyst said.