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(From left) Mr S.V. Mony, CEO, AMP Sanmar, Assurance Co, Mr N Sankar, Chairman, Sanmar Group, and Mr Tim Wade, MD, AMP Intl., at a press conference in Chennai.

CHENNAI, Jan. 21

AMP Sanmar Assurance Company Ltd on Monday announced its arrival on the life insurance scene in India, pinning its business hopes on the potential in small towns and villages and the brand-building effects of the captain of the Australian cricket team, Steve Waugh.

The company is a joint venture between AMP of Australia and the Chennai-based Sanmar group. A pre-recorded video address by Waugh, played at the launch function here, spoke of AMP's role in Australia: "As an Australian, I am very familiar with AMP, and the important role it has played in the lives of millions of Australians since 1848."

Waugh, who apologised for his inability to attend the launch function, is scheduled to visit India in March and participate in brand-building events here. The cricket icon has signed up with AMP for three years.

Mr S. V. Mony, Chief Executive Officer of AMP Sanmar, later said at a press conference that he was not worried about his company's late entry. AMP Sanmar hopes to beat the competition by going to the "second and third level towns and villages faster than others." Both Mr Mony and Mr Tim Wade, Managing Director, AMP International, admitted that Steve Waugh's brand ambassadorship may not be effective in selling life insurance products in towns and villages. However, the company proposes to run a campaign, which may include a series of events.

Capitalised at Rs 125 crore, AMP Sanmar expects to break-even in seven years. In the first full year of operations, it expects to sell 30,000 policies, involving a sum assured of around Rs 300 crore, and earn a premium income of around Rs 26 crore.

Mr Mony later told Business Line that he expects the first set of products (five policies with two riders) to be approved by February. "We expect to go live by the end of February," he said.The Australian collaborator, AMP Ltd, which manages funds of about Rs 7,00,000 crore, has a presence in three countries, viz., Australia, New Zealand, the UK and Japan.

Mr Wade said that the Indian life insurance market looked similar to the Australian market about 15 years ago. He said that AMP was entering an agency-driven market outside Australia for the first time and therefore "it is very important for AMP to get it right here."

Mr Mony said that the company had trained 120 agents (called `advisors') and another 260 would clear the agency examinations soon. Besides, AMP Sanmar is set to sign up with a "large company in travel business" for distributing its products. Further, AMP Sanmar is in talks with some banks and corporates, for selling the products.

When pointed out that many other new life insurance companies, such as SBI Life, ICICI Prudential and HDFC Standard have partners who are household names in India, the Chairman, Sanmar group, Mr. N Sankar, said the Sanmar group also enjoyed popularity in the southern region. He said the group's financial company, Overseas Sanmar Ltd, had paid all its dues to its depositors, before it was taken over by Nicco Uco of Kolkata.

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