ING Vysya Life to infuse Rs 100 cr

ING Vysya Life Insurance, a private life insurer in India ranked 9th in the list of 15 private insurers in the country, is pumping in an additional Rs 100 crore to its operations to expand.

The company, started six years ago, has seen a capital infusion of Rs 790 crore so far. ING Vysya Life Insurance is jointly managed by ING Group (26 per cent), Exide Industries (50 per cent) and the remaining between Ambuja Cement and Enam Group.

This fresh infusion is part of the overall commitment from these shareholders to invest Rs 1,380 crore by 2009.

Kshitij Jain, MD & CEO, ING Vysya Life Insurance said that the total premium under management presently stands at Rs 950 crore and this is expected to touch the Rs 2,000 crore mark during the next calendar year.

"Presently, we have a little over half a million policy holders and this will go up to a million customers by 2008-end. We have been seeing a good 70 per cent plus growth during 2007 and we hope to grow by 80 per cent during next year," he added.

Presently, 80 per cent of the policies being sold by this insurer is Unit Linked Insurance Plans. Jain was of the view that they intend to be a $1 billion firm by 2010, hoping to quadruple business in three years.

According to industry analysts, the going may be tough for this firm as there is intense competition in the private insurance sector with Life Insurance of India, the Indian government-owned insurer leading the pack with a grip over 70 per cent of the market. Further, another five players are expected to start operations during the next year.

"The pie is growing and we feel each and everyone can grow aggressively," Jain noted stating that the industry is getting newer and newer products as more players come in.

ING Vysya Life, to tap into the fiscal year-end rush to avail of insurance policies, is planning to bring out new products including a pure risk policy which promises to return the total premium paid without interest at the end of the insurance period in case no claims were made.