Banking on the growth plans of its partner banks, Canara HSBC Oriental Bank of Commerce Life Insurance Company is aiming for 30 per cent increase in new business premium (NBP) in 2016-17 to Rs 650 crore.
"We are expecting NBP to be at Rs 500 crore during this financial year (2015-16). In the next fiscal, we are expecting a 30 per cent rise in NBP at about Rs 650 crore.
"As our partner banks are in an expansion mode, it will help our distribution channel in increasing penetration of the company," Canara HSBC OBC Life Insurance Chief Executive Officer Anuj Mathur told PTI here.
For the private insurance company, which has a bancassurance model of distribution, NBP stood at Rs 350 crore in FY15.
The company, which is emphasising on renewals, is targeting 5-10 per cent growth in net profit during this financial year.
"During last financial year, we achieved a profit of Rs 110 crore. This fiscal, we are aiming a 5-10 per cent increase in net profit, that does not include the lapses as we are more focused on renewals," Mathur said.
Going forward, he said, with launch of new products and increasing distribution network, the private insurer is aiming for growth of up to 20 per cent net profit in FY17.
Talking about future plans of the company, Mathur said Canara HSBC OBC Life Insurance is mulling to foray into the health space in the next financial year.
"The health segment has huge potential and as an insurer we also want to tap the opportunities in the space. However, we need to evaluate it further, which we will do in September this year, before entering the health segment. I hope we will foray into the health space in FY17," Mathur said.
He added that the company is adequately capitalised and is not in need of any capital infusion.
The company has two products -- one traditional endowment and one term plan -- in pipeline to be launched during this financial year.
Mathur said the company has four plans in pipeline for the first four months of the next financial year.
"We have a traditional child plan, a pension plan, an annuity plan and a digital plan in pipeline for the first four months of FY17," he added.
The company has overall 14 plans, of which five are flagship products.
Launched in June 2008, Canara HSBC OBC Life Insurance is jointly owned by two of India's leading public sector banks -- Canara Bank (holding 51 per cent) and OBC (23 per cent) -- and HSBC Insurance (Asia Pacific) Holdings (26 per cent), the Asian insurance arm of one of the world's largest banking and financial services groups - HSBC.
