Tata AIG aims to maintain 100% growth

Tata AIG Life Insurance Company is looking to maintain triple-digit growth rate it achieved in the last seven months and thereby double premium income by financial year-end.

The company, which currently manages assets worth Rs 4,000 crore, reported a premium income of Rs 1,367 crore last financial year.

Managing Director Trevor Bull said, "We have been growing by around 100 per cent over the last seven-month period, which is considerably higher than the previous year's period when we grew only 25 per cent. So, in terms of growth, we hope to maintain the momentum through to the year-end."

The company needs substantial capital as it intends to grow aggressively in financial year 2009. However, it ruled out the possibility of going public.

"To support our robust growth plans, we do require large capital. But, at the moment, we are not considering the IPO option," Bull said.

The current capital base of the company is Rs 697 crore. Meanwhile, Tata AIG today announced the launch of its new unit-linked product, InvestAssure Flexi.

The product offers a 5 to 40 year term and additional options like investing in a combination of seven funds.

The lowest annual premium is fixed at Rs 15,000. The premium allocation charge in the first year would range between 1.5 per cent-16 per cent depending upon the amount of investment.

"This policy should be the main driver of growth in the ulip segment for the company as it would enable investors to manage their risk-return balance by providing them flexibility to customise their investment portfolio," Bull said.

When asked when the company was expected to break even, Bull said, "Though we are yet to break even, there is absolutely no pressure on us. We are not in a hurry to meet the target," he said.

The company began operations seven years ago. According to Irda norms, a company must break even with in ten years of its operation.