Birla Sun Life to double share capital

Birla Sun Life Insurance Company will double its share capital to Rs 500 crore by the end of the sixth year of operations.

"The additional infusion of Rs 250 crore capital will help us break even by the end of the sixth year," said Sun Life Financial CEO and Birla Sun Life chairman Donald Stewart.

Canada-based Sun Life Financial has 26 per cent stake in the Indian life insurance venture and is an equal partner in the mutual fund arm.

The Aditya Birla Group holds majority stake in the insurance business. The board of directors met on Tuesday to finalise the plans for the coming fiscal. the board expects growth rates to continue at the rate of 50-100 per cent.

"We want to maintain our top three position," said Stewart. Impressed with the performance of its joint ventures in the country, Sun Life Financial has decided to increase its investment in India from the initial $ 100 million Canadian to $ 150 million Canadian.

"Of this we have already invested $ 50 million Canadian so far," said Stewart. The Canadian outfit anticipates consolidation taking place in the industry, whereby it would be open to acquisitions. "This will mean greater investment," he added.

After its plans to get into the government pension business, Sun Life Financial is also looking at the BPO opportunities.