DLF Pramerica Life eyes 3-fold rise in business

DLF Pramerica Life Insurance is expecting new business of about Rs 90 crore in 2010, three times the business generated in the first year of operations.

The life insurer, which entered the market in September last year, was looking to add 30 branches next year, primarily in Gujarat and Rajasthan, Managing Director and Chief Executive Officer Kapil Mehta told Business Standard.

“Next year, we will grow faster than the market and add 30 branches. Over the next two-three years, we will have a pan-India presence,” Mehta said.

DLF Pramerica expects to break even in seven-eight years. The promoters of the joint venture company will invest Rs 1,000 crore over the next five-six years. It has a capital base of Rs 187 crore.

Of the 30 branches opened so far, 19 are in Punjab while the rest are in New Delhi and Haryana. In the last one year, the company has added 700 employees and 1,100 agents. It has sold about 11,000 policies since the launch with a total business of Rs 25 crore.

Mehta said DLF Pramerica would close the year with new business of Rs 35 crore as people invest in insurance policies during the end of the year to lower their tax outgo.

The company is targeting sections such as schools, teachers and defence personnel to increase its share in the crowded life insurance market. It is focusing on traditional pure protection plans and long duration products of 15 years.