Anil Ambani-led financial service conglomeration Reliance Capital has restarted stalled expansion plans as the market shows signs of recovery.
Reliance Life Insurance plans to infuse between Rs. 400 and 500 crore this year in addition to Rs. 68 crore injected in the first quarter as it aims to grow the business at 15 to 20 per cent, Reliance Capital CEO Sam Ghosh said. The company has regulatory approvals for 107 new branches.
“We are targeting a breakeven next year,” Ghosh said, adding the company plans to expand aggressively in an aim to be among the top three health insurers for which a separate unit has been set up.
Ghosh said Reliance Consumer Finance has revived lending for homes, automobiles and other secured loans. It plans to hire 500 sales staff this year, while Reliance General Insurance plans to hire 200 agents, company officials said.
Reliance Life will be launching health products that cover outpatients, hospitalisation, and cash for hospital care, which will be bundled with dental care and ophthalmology. In the second phase, the firm plans to offer products for old age care.
Ghosh also said that Reliance Capital will consider setting up a stand alone health insurance subsidiary once a pending Insurance Bill in parliament goes through.
The Bill is expected to bring down the minimum capital required to set up a health insurance company to Rs. 50 crore from Rs. 100 crore and also allow insurers to sell longer term health policies covering three to give years, against the current regime of annual policies, Ghosh said.