ING Vysya Life to infuse Rs 700 crore

ING Vysya Life Insurance plans to infuse Rs 700 crore in capital over the next three years. The company claimed that this will take the business to the $1-billion mark"" more than three times of Rs 650 crore in 2006.

The shareholders of the private insurer, which include Exide Industries, Gujarat Ambuja Cements, Enam Securities, besides ING Insurance, on Friday announced that they have approved an capital infusion of Rs 100 crore into this business.

With this infusion the paid-up capital in the company goes up to Rs 640 crore.

Armed with this, ING Vysya Life plans to double its branches to 320 in 2007. Kshitij Jain, MD & CEO, ING Vysya Life, said, " After strengthening the business in the last five years, we are now entering the next phase of growth.

The Board of Directors have reposed faith in the business with this infusion and a commitment to infuse Rs 700 crore in three years which will eventually raise the total paid up capital to Rs 1,340 crore."

The company is targetting a total premium income of Rs 1,400 crore in the next calender year and its current sum assured stands at close to Rs 10,000 crore.

Speaking on the issue of raising the FDI bar to 49 per cent in Indian insurance companies, ING Vysya Life director Peter A Smyth said that Exide is committed to this business and will continue to hold 50 per cent stake in the company.