IDBI Fortis Life Insurance to break even by 2015

Private sector insurer IDBI Fortis Life Insurance, which started its business last year, today said it expects to break even by 2015.

"We aim to break even in the next seven years (of operation)," IDBI Fortis Life Insurance Managing Director and CEO G V Nageswara Rao told reporters here, launching a guaranteed income product. The company invested Rs 250 crore in March this year, taking its paid up capital to Rs 450 crore. It expects to earn profit by 2015, he said.

IDBI Fortis Life is a three-way joint venture (JV) of IDBI Bank, Federal Bank and Fortis Insurance of Europe. In the JV, IDBI Bank has a majority stake of 48 per cent, while Federal Bank and Fortis own 26 per cent each.

Expanding its product portfolio, the insurer introduced a plan that would provide an additional guaranteed income to the customers.

"Incomesurance Endowment and Money Back is designed to give a guaranteed income to our customers for their child's education, planning for daughter's marriage... Ensuring comfortable retirement income," he said.

Under the plan, a customer can get his income as a lump sum endowment or as an annual money back. The plan provides death benefits.