Financial services provider Shriram Group would infuse Rs 100 crore into its life insurance arm for making it a pan-India operator within a period of two years, a top official said today.
The infusion would help fund-recipient Shriram Life Insurance Company enter north-eastern markets, besides consolidating its business in the country, Shriram Group chairman R Thyagarajan told reporters here.
"Over a period of two years, Rs 100 crore will be infused in Shriram Life Insurance," he said.
Shriram Life Insurance Company has also entered into a joint venture with South Africa-based insurance firm Sanlam Group, which holds 26 per cent stake in the entity.
"We are aiming to be a pan-India operator... we will focus on those regions where we do not have presence," Shriram Life Insurance Company Managing Director Akhila Srinivasan said.
"We will set up 250 branches in North-Eastern areas by this financial year," she said. Currently, Shriram Life Insurance Company has more than 1,000 offices in the southern,
western and northern markets.
Srinivasan said the new business premium collection of the company for the year ended March 31,2010, stood at Rs 1,235 crore.
"We grew by 48 per cent in the APE (Annual Premium Equivalent) to Rs 284 crore, which is higher than the industry growth of 13 per cent," she said.
Thyagarajan said the APE is expected to grow five-fold, from Rs 284 crore in 2009-2010 to Rs 1,500 crore within another five years.
On the Shriram General Insurance Company, also owned by the group, Thyagarajan said, "Currently, we are testing the waters in Philippines. Another office would be set up in
Indonesia by the end of this financial year."
Shriram Group also has plans to infuse another Rs 100 crore into its general insurance arm to strengthen operations in the Asian region. "We want to enter Thailand, Malaysia and Vietnam through local partners," he said.
Shriram General Insurance reported a profit after tax of Rs 15.87 crore for the year ended March 31, 2010. The gross premium of the company, which sold 6.66 lakh policies,
stood at Rs 416.93 crore, Shriram General Insurance Company Managing Director Jasmit Singh Gujral said.