New York Life in Rs 2,400-cr India expansion | india | Hindustan Times
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New York Life in Rs 2,400-cr India expansion

india Updated: Dec 06, 2007 21:59 IST
BS Srinivasalu Reddy
BS Srinivasalu Reddy
Hindustan Times
Life insrance

The parent of Max New York Life Insurance (MNYL) will pump in over Rs 2,400 crore in India over the next three years to allow it to keep pace with the high growth momentum it has achieved here, the New York Life Insurance Company (NYLIC) said.

“MNYL has a capital base of Rs 807 crore at present. To facilitate its high growth pace, we will have to invest about three times this amount in the next three to four years. Capital will not be allowed to be a constraint for its growth,” said Ted Mathas, President and COO of NYLIC, after MNYL's board meeting late on Wednesday.

Gary Bennett, managing director and CEO of MNYL, said: “We have grown at 80 per cent compounded annual growth rate (CAGR) over the last six years and are planning to grow at over 60 per cent CAGR on the enhanced base in the next four years." The company — a joint venture between New York Life, a Fortune 100 company, and the Analjit Singh-led Max India — expects to break even in 2009.

“Emerging Markets account for 25 per cent of the non-US business of NYLIC. But they posted a 25 per cent growth last year. However, US operations will remain predominant due to a higher business base for another four years at least,” said Mathas.

The US market is growing at two to three per cent, while NYLIC had been growing by about 9 per cent over the last few years. US operations account for assets of $140 billion against the overall total assets of the company at $250 billion

To a query, Mathas said his company’s operations in China were at a nascent stage when compared to that in India. “We are in China for the last four years with smaller operations. We are present in China only in 12 cities against 130 in India. The China operations are lagging that of India by about two years,” Mathas added.

Total life insurance cover provided by MNYL crossed about Rs 55,000 crore and its new premium income in the first half of the current fiscal was at Rs 594 crore. Unit linked insurance plans (ULIPs) account for 60 per cent of its premium receipts.