THE PROMOTERS of Birla Sun Life Insurance (BSLI) have infused an additional capital of Rs 30 crore into the company’s capital base.
The infusion enhances its capital to Rs 520 crore as on July 31, 2006. This has been done to expand the company’s distribution network and to invest in technology infrastructure.
The increase in capital base would help BSLI branches in Madhya Pradesh and Chhattisgarh in facilitating its services through existing network and document imaging facility to customers. BSLI has five branches in Madhya Pradesh at Bhopal, Indore, Ratlam, Jabalpur and Gwalior.
The additional infusion is as per the current IRDA guidelines and is in the ratio of 74:26 between the Aditya Birla Group and Sun Life Financial Inc respectively.
“The joint venture partners have a strong commitment to the growth of Birla Sun Life Insurance. The additional capital will be utilised to strengthen the infrastructure of BSLI. Our distribution network is an area of focus.”
“We are expecting to increase our branch strength from 85 to more than 110 by September 2006. Additional branches are planned in smaller towns across India,” said Aditya Birla Group Director, Financial Services, S K Mitra.
He said the part of capital infusion would contribute towards projects in technology, which would enhance cost reductions and improve customer services.
“Some of these projects are ‘Document Imaging’ and website enhancement as our website has been updated and developed on the latest Microsoft technology platform, allowing an enhanced navigation experience for customers who visit the website,” Mitra said.
BSLI has achieved a total premium of approximately Rs 1,200 crores in the 2005-06 financial year. The company has already covered in excess of 1.1 million lives since its inception and the total sum assured is approximately Rs 27,000 crores.
The total Assets Under Management (AUM) of the company is approximately Rs 2,600 crores as on March 31, 2006.