Sun Life keen to raise stake in joint venture

The foreign joint venture partner of Birla SunLife Insurance, Sun Life Financial Inc is keen on enhancing its stake in the company to 49 per cent.

"Our foreign partners are keen on acquiring a 49 per cent in our company and the Aditya Birla group has also no objections in reducing its stake from 74 per cent to 51 per cent," explained the chief executive officer, Nani Javeri.

"This will help increase inflow of foreign direct investment into the country. But all depends on the regulators "" the Insurance Regulatory Development Authority (Irda) and the government. If the government allows us to enhance our foreign partner's stake, Sun Life Financial will be the first company to enhance its stake in the company," explained Javeri.

"As has happened in the banking sector, the government will probably allow foreign insurance to hold more than 26 per cent in Indian companies and the Irda is also keen about allowing these companies to take an enhanced stake. But we need to wait and watch as to when will the announcement actually come," Javeri added.

Meanwhile, the company has targeted a Rs 350 crore first premium income in the next three and half months against a Rs 100 crore premium income achieved in the first eight months.

"Although insurance is being bought for the purpose of covering lives, a major portion of it is still sold as a tax savings instrument, hence sale of insurance is still skewed towards the later half of the fiscal, explained Javeri. A Rs 450 crore premium income is expected to translate into 350 per cent growth in a single year, against a Rs 100 crore first premium income last year. The company has also lined up a number of new products in the next few months, life group pension and term insurance policies.

Javeri traveled to Kolkata to launch the company's portal that enabled sale of insurance through its Website. It has tied up with four banks along with allowing customers to pay renewal premium as well as first premium through its portal.

Debit card holders of these bank's will be able to pay for their premium through the net. The portal also allows clients to pay with their Master's and Visa credit cards.

The company at present has 8500 agents and has presence in 28 cities.