Star Union Dai-ichi Life expects 30% growth in new premiums in FY16

Dai-ichi Life of Japan to raise stake to 44% in insurer once Bank of India off-loads 18%, formal application to FIPB to be made

Private life insurance company Star Union Dai-ichi Life Insurance (SUD Life), which is a joint venture between Bank of India (48 per cent), Union Bank (26 per cent) and Dai-chi Life of Japan is expecting a 30 per cent growth in new business premiums for FY16.

Girish Kulkarni, MD & CEO of SUD Life said, "We are expecting a 30 per cent growth in first year premiums in this fiscal. Along with it, the focus is to improve persistency.Now, we are far more prepared to handle growth"

With respect to the Jeevan Jyoti Bima Yojana, Kulkarni said that they have already covered 2 million lives so far. He added that the scheme will help increase awareness of insurance in the country.

The insurer's foreign joint venture partner Dai-ichi Life of Japan is planning to increase its stake to 44 per cent from 26 per cent at present. Koichiro Watanabe, President, Dai-ichi Life Insurance explained that they have high expectations of growth in the Indian market. "We are in discussion with our joint venture partners on the stake increase, Once it is finalised, we will make an application to Foreign Investment Promotion Board," he said.

The new insurance act has allowed foreign partners in insurance companies in India to increase their stake to 49 per cent. Earlier, they were allowed to only have up to 26 per cent stake in Indian companies.

However, the act has said that all Indian insurers will have full Indian management and control. Kulkarni said that they are fully compliant with all norms on management control. He added that this was never an issue for the company and that their current stricture abides by current laws.