Bajaj Allianz to garner Rs 6000 cr premium

Bajaj Allianz Life Insurance Company Ltd is expecting to record a total premium income of Rs 6,000 in 2006-07.

Sam Ghosh, chief executive officer, said, "The company will be targeting a 100 per cent growth in total premium income next year at Rs 6,000 crore, of which Rs 5,000 crore shall be first premium income."

Meanwhile, the company expects to end the year with a 200 per cent increase in total premium income in 2005-06 at Rs 3,000 crore compared with last year's Rs 1,000 crore.

"We are likely to record total premium income of Rs 3,000 crore in 2005-06, of which around 16.70 per cent will come from renewal of old policies," Ghosh said. Ghosh further noted that there would be additional capital infusion by March 2006.

"By the end of the current financial year, additional Rs 100 crore capital will be infused into the company augmenting the existing base of Rs 368 crore," he added.

The company plans to enhance the share of its rural business to 22 per cent from current 18 per cent. Few more products will be launched in the first quarter of 2006-07 for the rural market.

"We will be launching micro insurance product for our rural market. It will be launched by Q1, 2006-07 and will primarily be a low sum assured product," said Ghosh.

Eastern region, which contributes around 25 per cent of the company total premium income, will seen another 55 new branches in West Bengal and Orissa within June 2006.

Seventy per cent of the company's business comes from agents, 20 per cent through bancassurance and remaining 10 per cent through alternate channels. The company has tie-ups with Standard Chartered Bank and Syndicate Bank for distributing its insurance products.