Reliance Life may infuse Rs 1,500 cr capital in 3 years

MUMBAI: Reliance Life Insurance is planning to infuse Rs 1,500 crore as capital over the next three years to fund its growing business in the life insurance segment. The business plans also envisage the company extending its branch and agents network.

According to Reliance Life Insurance CEO P Nandagopal, the company is looking at infusing Rs 1,500 crore to its existing base of Rs 900 crore. The pace of capital infusion would depend on the pace of its business growth, he told newspersons on Wednesday at a product launch of the company.

Reliance Life Insurance, a relatively late entrant to the life insurance business after the sector was opened up earlier in the decade, saw its premium income grow by 165% to Rs 930 crore until September this year, Mr Nandagopal said. This is almost the same growth it achieved in the whole of last year.

The company is expected to end the year clocking a growth of over 200%, according to senior Reliance Life Insurance officials. The company, which is part of the Anil Dhirubai Ambani group, plans to increase its current agent strength from 1,40,000 to 2,00,000 by December. Besides, its branch network is expected to increase to 740 from 600 branches now. The company is also exploring a foray into health insurance.

The bulk of the company’s income is from unit-linked insurance plans, with traditional products accounting for just about 10% of the business. The company’s recent product — Reliance Child secure plan — is a multi-premium product with an in-built waiver facility in the event of the death of the proposed insurer.