Bharti Axa to step up investments, focus on small cities

MUMBAI: Bharti Axa General Insurance Company is finalising plans to take its paid-up capital to Rs 645 crore from Rs 230 crore in the next five years to meet its expansion targets. The general insurance company, which is a joint venture between the Bharti Group (74%) and the Axa Group (26%), had infused Rs 40 crore last month.

The company is working around a blueprint to widen its footprint to 100 locations from the 55 by the end of 2009. It is also keen to increase its number of agents to 3,000, from the current 1,700.

���In the next two years, we are planning to grow health premium income to 20% of the total premium income, from 5% now,��� said Kimsoon Chua, chief operating officer, Bharti Axa General Insurance. The contribution of rural business is around 20-25%. ���Sixty per cent of the company���s premium income comes from the company���s retail business, which includes motor, health, personal accident, home and shop insurance.���

The company is planning to expand its presence in tier II, III and IV cities, to tap into the large retail market there. The focus will be on retail products like health, personal accident, motor, home and shop as well as agricultural products like farmers��� package.

From the commencement of operations in August 2008 to March 2009, the company had collected premium of Rs 32.3 crore and from April 2009 till date, another Rs 130 crore premium was received. ���Going forward, our focus will be on building health insurance portfolio. We are in the process of filing more products with the regulator,��� said Balaji Cuddapah, vice-president (property and engineering).