The Hindu Business Line : HDFC Standard aims at 15% growth in fresh biz premium

Mumbai, Nov. 16 HDFC Standard Life Insurance is targeting a 15 per cent growth in its fresh business premium in the current fiscal, despite growing at a negative 14 per cent in the first half.

“Even though the first half was not good for the private players, I expect the private insurers to grow at 10-15 per cent this fiscal and our growth will be in line with the industry,” said Mr Paresh Parasnis, Principal Officer and Executive Director.

The company, currently capitalised at Rs 1,846 crore, had planned a capital infusion of Rs 350 crore at the beginning of this fiscal. Of this, Rs 50 crore has already been infused. Further capital will be infused depending on the growth in business, said Mr Parasnis, at the launch of the company’s ‘Super Series’ product range.

The company launched a child plan and a pension plan under this range here today. It also plans to launch an endowment product and a limited underwriting product by December. For the company, child plans contribute around one-third of the new business.

The share of unit-linked plans in total sales has come down from 85 per cent in 2008-09 to 75 per cent this fiscal.

The share of fresh business premium coming through the bancassurance channel is likely to come down as the insurer lost two banks — Union Bank of India and Bank of Baroda — which set up their own insurance companies.

“In 2008-09, around 47 per cent of the fresh business came from bancassurance. This year it is expected to come down to 40 per cent,” said Mr Parasnis.

Currently, HDFC Standard Life has tie ups with HDFC Bank, Indian Bank and Saraswat Bank.

The insurer expects to break even by 2011-12. It is also looking to reduce its operating-expense ratio, which stood at 29 per cent last year.