HDFC Standard Life, the joint venture between HDFC and UK-based Standard Life, will infuse Rs 300 crore in the second half of the current financial year.
“We are focusing on increasing our efficiency and productivity. We will not add any branch or recruit people in this financial year. We expect a growth of 10 per cent and will infuse capital as we write new business,” said HDFC Standard Life Principal Officer and Executive Director Paresh Parasnis.
Parasnis said that he expected the private players' new business premium collection to grow by 10-15 per cent. The new business income of the insurer dropped by 14 per cent to Rs 1,120 crore during the first six months of the financial year.
HDFC Standard Life had posted a loss of Rs 502 crore during 2008-09. The insurer, however, will break even by 2013. It aims to bring down the management expense to 20 per cent from 29 per cent last year, when the insurer was expanding heavily.
It launched a child plan, HDFC YoungStar Super, and a pension plan, HDFC Pension Super. In addition, it is planning to launch an endowment plan and a limited underwriting product with the maximum sum assured of Rs 20 lakh at a minimum premium of Rs 15,000. A limited underwriting product is sold without a medical test and taken on the face of declarations by the policyholder.
Looking at an initial public offer in 2010-11, the private sector insurer had started working on the valuation norm based on the market consistent embedded value.
The insurer expects the income from bancassurance to drop from 47 per cent last year to 40 per cent. The bancassurance tie-up with Bank of Baroda broke on November 2, 2009. At present, the insurer sells policies through HDFC, Indian Bank and Saraswat Bank.