Old Mutual keen on raising life venture stake

Kotak Mahindra's overseas partner Old Mutual Plc in Kotak Mahindra Old Mutual Life Insurance Ltd is keen on increasing its stake in the company from 26 per cent to 49 per cent if the regulatory environment allows, said company managing director Shivaji Dham.

The central government in the annual budget for 2004-05 has proposed to hike the foreign direct investment (FDI) limit in the insurance sector from 26 per cent to 49 per cent.

Kotak Mahindra Old Mutual Life Insurance is planning to infuse fresh capital of Rs 20-Rs 50 crore in the current fiscal. At present, the company's capital stands at around Rs 233 crore.

"Capital is not a problem for the company. In this fiscal, we plan to infuse around Rs 20 to Rs 50 crore," said Dam on a sidelines of a press conference in a Mumbai.

Its premium income is expected to increase by about 36 per cent to Rs 300 crore in March 2004-05 against Rs 127.10 crore in the previous year, he added. It plans to increase it market share to 1.7 per cent by March 2005 from 0.7 per cent.

The company today unveiled two new products "" Kotak safe investment plan (KSIP) and an aggressive growth fund. KSIP is a unit linked plan which offers long term equity exposure while guaranteeing the sum assured. Other features include switching between funds, loan facility and surrender facility after three years.