Bharti Axa General Insurance Company (BAGICL), the joint venture project of Bharti Enterprises and global AXA group, today said it would invest Rs 250 crore till 2012 to fuel the company growth.
"We will increase our capital by another Rs 250 crore in two years to expand our business. Our current capital is close to Rs 400 crore," BAGICL Chief Executive Officer and Managing Director Amarnath Ananthanarayan said on the sidelines of the launch of Anjali Micro Finance operations.
He said the company would focus on rural business and has targets to increase the rural portfolio from the current 8 per cent to 20 per cent.
Prices of rural insurance products in the recent years has come down after the re-insurance companies chipped in. Earlier, the demand was huge with less competition, Ananthanarayan said.
Aviva Life corporate initiative director Monica Agarwal said rural and micro-insurance products costs declined by 50 per cent compared to 4 to 5 years ago.
Ananthanarayan said that the business, estimated at Rs 320 crore as of March 2010 would grow by 70 per cent in the current fiscal.
