Kotak Life premium income up 122% in first half

Kotak Mahindra Old Mutual Life Insurance announced a growth of 122 per cent in the first-year premium (FYP) income collected in the half year ending September 30, 2006.

The adjusted premium equivalent (APE), a standard measure in the Industry that takes single premium income at 10 per cent, has grown from Rs 73.83 crore in half year (HY) of 2005-06 to Rs 163.78 crore in HY 2006-07, a growth of 122 per cent.

Kotak Life Insurance also saw its total received premium income jump from Rs 136.87 crore in HY05-06 to Rs 291.51 crore in HY06-07, a growth of 113 per cent.

With a regular premium income of Rs 142.70 crore April-September '06 against Rs 70.26 crore in the corresponding period last year. Buoyed by the strong growth trend it witnessed in the recent months, the company is targeting an overall premium collection of over Rs 1,000 crore by the end of this fiscal year.

On the remarkable performance of the company, Gaurang Shah, managing director, Kotak Life Insurance said, "Our consistent performance makes it evident that the company is well positioned to be a long term player. We have embarked on an aggressive strategy looking at the future of Kotak Life, not just in numbers, but more in terms of market share and size. Today, Kotak Life Insurance manages Rs 1,335 crore in assets of which, approximately 40 per cent is in equity. We will continue to build on our distribution strengths to improve profitability, and deliver long-term value. We will also continue to offer world-class customised products to our discerning customers."

Kotak Life has increased its sales management force by 136 per cent, supporting its tied distribution force of 17,747 licensed advisors. The increased life advisor base has been operating at top quartile productivity on industry standard parameters.

Kotak Life is extremely bullish about its future. "The coming year would see Kotak Life Insurance further strengthening its distribution, brand and operations to cement its position as a long term value player in the life insurance business. With plans to grow 100 per cent on its FYP base, the focus would also be to expand geographically to cover 24 more locations across the country," added Shah.

Since inception, Kotak Life has been the market leader in the guaranteed fund performance space. With its guaranteed growth fund fetching 32.3 per cent returns since inception as on 30th Sept '06, Kotak Life is confident to consolidate its position in the guaranteed fund space.

Kotak Life Insurance provides 'Capital Guarantee' with a high element of equity. Even in a guaranteed growth plan with 80 per cent equity exposure, the upside rests with the customer and the downside is protected under the company's guaranteed maturity values.

Kotak Safe Investment Plan, Kotak Flexi Plan and Kotak Privilege Assurance Plan are all designed on these platforms.

Kotak Mahindra Old Mutual Life Insurance is a joint venture between Kotak Mahindra Bank Ltd and Old Mutual plc.