Reliance Life Insurance to get capital boost

Reliance Capital to infuse Rs 1500 crore by 2010.

Anil Dhirubhai Ambani Group-owned Reliance Capital will be infusing Rs 1,500 crore in Reliance Life Insurance Company, its 100 per cent life insurance subsidiary, by 2010. The current capital base of Reliance Life Insurance is Rs 900 crore.

"This year, we have grown by 160 per cent and are targeting to grow by 200 per cent for the remaining year. Last year, we did a business of Rs 930 crore, which we have already crossed a few days ago. Currently, we are in 500 cities and towns and plan to be present in 1,000 cities by the next year," said P Nandagopal, the president and CEO of Reliance Life Insurance.

The company has plans to increase the number of branches from the present 600 to 740 by the next month.

The company has four unit-linked insurance plans (Ulips), which are the growth drivers, contributing 90 per cent to the new business premium, while the remaining 10 per cent of the business comes from six traditional insurance products. The company was considering introducing health insurance products, informed Nandagopal.

Reliance Life launched another Ulip today called Reliance Secure Child Plan. In case of total and permanent disability of a child due to an accident, Reliance Secure Child Plan will provide fixed income at a rate of 10 per cent of the sum insured each year to the child throughout its life.

Reliance Life has a tie-up with 15 cooperative banks and 70 corporate agents that contribute 10 per cent to the new business premium, while the remaining 85 per cent comes from 1.4 lakh agents.

The funds under management of the company are Rs 2,500 crore, of which 65 per cent are in equities.

Reliance Life Insurance has increased its market share from 4.07 per cent in March to 6.25 per cent in September. Last month, the company launched Express Life, where it issues Ulips over the counter.