Kotak Old eyes Rs 300 cr first premium income

Kotak Mahindra Old Mutual Life Insurance expects its first premium income to jump up 2.5 times this fiscal to Rs 300 crore.

The promoters, Kotak Mahindra Bank and Old Mutual, also plan to infuse about Rs 60 crore into the life insurance joint venture this year.

"We anticipate our first premium income to increase by 2.5 times this financial year," Shivaji Dam, managing director, Kotak Mahindra Old Mutual Life Insurance, said at a press conference to announce the renaming of OM Kotak Mahindra Life Insurance Company Ltd as Kotak Mahindra Old Mutual Life Insurance Ltd.

The company's first premium income increased from Rs 30 crore three years ago to Rs 125 crore in FY 2003-04. It earned Rs 26 crore by way of first premium income in the first quarter ended June 30, 2004.

Hasan Askari, CEO, Old Mutual Plc and vice chairman of Kotak Mahindra Old Mutual Life, said that the South-Africa based Old Mutual was committed to the Indian joint venture.

"We will maintain our share (26 per cent) and increase it subsequently if the regulatory environment allows," he said.

Kotak Mahindra Old Mutual Life Insurance Ltd has a paid-up capital of Rs 225 crore.

Askari averred that Old Mutual is looking out for investment opportunities in India. Under consideration is an outsourcing project for the group's global operations and possibly a 'financial endeavour'.