New products, branches bolster Birla Sun H1 growth

MUMBAI: Birla Sun Life Insurance (BSLI) announced strong growth figures for the half-year ended September 2007, on the back of new products and expansion of its branch network which helped bolster its business.

The company has also moved to a third spot in terms of market share among private life insurers for September, after two years of dismal performance. BSLI president and CEO Vikram Mehmi attributed the performance of the company to the launch of seven new products and the 202 new branches rolled out this year. The company has also added 10,000 agents to its on-ground sales force and is training a further 20,000, he said.

BSLI plans to release new products in the health and retirement sector, and also roll out 1,000 more branches by this fiscal end. It is targeting an ambitious growth of 170% for the rest of the year, compared with last year’s figure of 30%, said Mr Mehmi. The company is also planning to use innovative distribution models like the Aditya Birla Group’s already existing fertiliser sales force in rural areas, and selling insurance on a personal basis to all employees of ABG over and above the current employee benefits they provide.

On a quarterly basis, BSLI reported a 171% rise in new business premium to Rs 416 crore from Rs 153 crore for the same period of last year, and a 126% jump in total premium to Rs 668 crore from last year’s Rs 296 crore. Funds under management stood at Rs 5,330 crore, up from Rs 3,081 crore a year ago. In September, BSLI had a 8% market share among private life insurers, and had an average premium ticket size of Rs 39,420. The rise in ticket size was largely due to the launch of its Supreme Life and Gold Plus schemes — with high exposure to equity, and aimed at high net worth clients.