AMP Sanmar Assurance Company, a life insurance joint venture between the Chennai-based Sanmar group and AMP, an Australian based financial services company, today launched their operations in Chennai.
The joint venture, which has signed Australian cricket team captain Steve Waugh as its brand ambassador, is targeting to sell 30,000 policies amounting to a premium income of Rs 26 crore in the first year. This is the second such brand ambassador deal that a Chennai-based company has with the Australian captain. Earlier, MRF had signed on Steve Waugh to endorse its products.
The Sanmar Group will hold 74 per cent stake in JV, while AMP will contribute 26 per cent of the initial paid-up capital of Rs 125 crore. The company expects to reach break-even stage by the end of its seventh year of operations.
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AMP Sanmar chief executive officer S V Mony told mediapersons: "We are planning to launch three capital guaranteed products- money back, special endowment and child protection- by the end of this month. We are also waiting the Insurance Regulatory and Development Authority approval for two more products, which will be launched by February- end."
At present, the company has ten customer service centres and 120 licensed advisors, and proposes to increase it to 40 centres and 500 advisors respectively by March 2002. As part of the marketing strategy, AMP Sanmar would target non-metro cities in the south, said Mony.
On whether being a late-entrant into the life insurance business would act as a constraint, N Sankar, chairman, Sanmar group, said: "The Sanmar group which is in business for the last 50 years has a lot of financial respectability especially among small shareholders."
AMP, a financial services company focused on wealth management and protection, has A$ 281 billion assets under management with a net profit after tax of A$ 1152 million in 2000.
Sanmar group, for the year ended March 31, 2001, had assets of over $750 million with a turnover of over US$ 500 million and a profit a tax of $20 million. It's core business include- chemicals, engineering, shipping and speciality chemicals.
Meanwhile, Royal Sundaram Alliance Insurance Co Ltd today announced that it had struck a five-year alliance with the Tamilnadu Cricket Association (TNCA). As part of the deal, the D-stand in Chepauk Stadium in Chennai will be known as the Royal Sundaram stand.
According to sources in the advertisement industry, the insurance company has committed close to Rs 1 crore for this tie-up and will have vantage advertisement points, which would include the electronic scoreboard in the stadium.