AEGON Religare plans to infuse Rs 230 cr in FY10

AEGON Religare Life Insurance is planning to infuse Rs 230 crore in the current financial year, taking its total capital base to Rs 350 crore. About Rs 50 crore was already infused in April 2009.

The private life insurer is also planning to enroll 10,000 agents and over 250 frontline sales staff during this period

“We will focus on productivity per agents. Hiring at a time when others are cutting on costs will be relatively easier. The proposed capital infusion and expansion plans is to support company’s target of Rs 240 crore annualised premium earnings (APE) for FY10,” said Chief Executive Officer Rajiv Jamkhedkar.

In the first nine months of its operation (the company had begun operations in July 2008), the company has managed to attract over 23,000 customers and an APE of over Rs 46 crore, of which 75 per cent came from unit linked plans and the rest from term plans.

At present, the insurer’s productivity per agent is Rs 2.5 lakh as against the industry average of Rs 1 lakh per agent. Jamkhedkar said the company would focus on strengthening its distribution channel and productivity for all of its 52 branches across 42 cities.

The company is also looking at a bancassurance partner. Many new entrants in the life space are hopeful of getting a bank partner as a lot of them will come up with for renewal this year.

AEGON Religare Life Insurance currently offers three term plans, two ULIPs, a pension plan and a child plan. In 2009-10 the company intends is planning to foray into health and annuity product lines.

The company has four distribution channels, including six corporate agencies, direct channel and agency force and is looking at signing-up with more corporate agencies and brokers.