Reliance Life eyes Rs 1,800 cr new business in FY14

Leading private insurer Reliance Life Insurance is targeting Rs 1,800 crore total new business premium in the current financial year, ending this month, and expects to continue a double-digit growth in the next fiscal along with full-year profitability.

The company recorded 56% rise in its new business premium collection to Rs 1,424 crore during April-December period of 2013-14, from Rs 911 crore in the year-ago period.

"We have continued our growth momentum in the first three quarters of this fiscal and achieved robust growth in our new business premium income during April-December 2013-14 with a focus on traditional products, agent productivity and improved quality of business.

"We expect to end this fiscal with a new business premium collection of Rs 1,800 crore and log a double-digit and profitable growth next fiscal," Reliance Life Insurance CEO Anup Rau told PTI.

The company posted 18.2% growth in its new business premium income in the third quarter ended December 31, 2013 to Rs 401 crore, helped by a significant increase in its individual insurance business.

Reliance Life, part of Anil Ambani-led Reliance Group's financial services arm Reliance Capital, registered a 4% growth in its total income, comprising new business and renewal collections, at Rs 971 crore in the third quarter.

The average ticket size rose by over 33% to over Rs 20,400 in the third quarter of this fiscal.

The total funds under management of Reliance Life as on December 31, 2013, stood at Rs 18,073 crore, while its profit grew to Rs 27 crore in the third quarter.

"Agency productivity improvement continues to be the key growth driver. The proprietary channels have also started making a visible contribution to the top-line," Rau said.

However, the company's renewal premium collection fell to Rs 574 crore during the October-December quarter of 2013-14 from Rs 596 crore in the corresponding period a year ago.

Reliance Life Insurance sold over 1,50,000 individual policies in the quarter ended December 31, 2013 and was one of the highest in the private sector.

Rau said the company's focus in the current quarter is to maximise business volumes to sustain its growth momentum till the end of the current financial year.

The company expects to capitalise on the sales surge this month as majority of the life insurance policies are bought in March to avail income tax benefits.