Kotak Life eyes 120% rise in premium income

Kotak Mahindra Old Mutual Life Insurance Ltd (Kotak Life Insurance) is planning to achieve 120 per cent growth in its total premium income at Rs 2,200 crore during FY08 as against Rs 1,000 crore in FY07. This also includes renewal premium.

However, the company is likely to double its first year premium income from the present Rs 600 crore to Rs 1,200 crore in FY08. The first year premium income in FY06 stood at Rs 397 crore, Pankaj Desai, executive director, Kotak Life Insurance, said.

"We have been growing consistently at about 100 per cent annually. We have embarked on an aggressive expansion strategy over the next few years and will be among the top players. We will continue to build on our distribution strengths through both our own offices and Kotak Mahindra Bank to increase our business and offer world-class products to our customers," he told reporters today.

He said the company is at present working on a few new products like whole life plan and make announcement in next three months.

During the present year, the company has settled death claims worth Rs 12 crore.

Its renewal premium income at 92 per cent is among the highest in the industry, Desai said, adding that 18 per cent of its business this year has come from the rural areas.

Kotak Life is also rapidly expanding its branch network and opened its third branch in Bangalore today. With this, its network has gone up to 74 in 50 cities, and by end-March it will have 82 branches. In Karnataka, the company plans to expand to tier-II cities such as Mysore, Mangalore and Hubli-Dharwad in the next financial year.

Kotak Mahindra Old Mutual Life Insurance is a joint venture between Kotak Mahindra Bank and Old Mutual plc. The JV company, which has till now invested Rs 365 crore, is planning to infuse a fresh capital of Rs 150 crore next fiscal, Desai added.