Max New York to raise Rs 200 crore

Max New York Life Insurance Company plans to infuse Rs 200 crore capital in 2007-08 to sustain growth in business and expand operations in the country.

Max New York Life, a 74:26 joint venture between Max India and New York Life, has a paid-up capital of Rs 732 crore at the moment.

"The company is likely to infuse about Rs 200 crore capital in the current financial year. The first instalment of Rs 70-80 crore may come next month," said Sunil Kakkar, director, finance, and chief financial officer, Max New York Life.

Being in a capital-intensive business, Max New York Life needs to infuse capital to sustain growth in business and operations in the country.

The life insurer, which expects to break even by 2009-10, is bullish on the business potential as penetration of insurance is very minuscule in India.

Last year, its new premium income doubled to Rs 920 crore. The company has already collected Rs 823 crore till August in the current financial year. It expects at least 80 per cent growth in new premium income this financial year.