The life insurance company’s expansion plans and customer acquisitions will be funded through internal accruals
Private insurer Canara HSBC Oriental Bank of Commerce Life Insurance is expecting to wipe off its accumulated loss of Rs 160 crore in the current fiscal, its managing director and chief executive officer Anuj Mathur said.
The life insurance firm formed in 2008 is a joint venture in which Canara Bank holds 51%, Oriental Bank of Commerce 23% and HSBC Insurance (Asia Pacific) Holdings 26%.
“We are in a very strong growth trajectory,” said Mathur, adding that the insurer is eyeing to maintain its growth trajectory of the past few years in its new business for the full year. The company has at a compounded annual growth rate (CAGR) of over 35% in the past three years in individual business. In 2017-18, the total business was Rs 2,781 crore, while its new business was Rs 818 crore.
The insurer has a solvency ratio of 370%, as per Mathur, which acts as a cushion for its expansion plans and adding new businesses. Though the life insurer has been profitable for the past six years, it is expecting a cumulative break-even in the current fiscal.
Mathur said the insurer’s expansion plans and customer acquisitions will be funded through internal accruals and it does not require capital infusion in the foreseeable future. The last capital infusion by the promoters happened six years ago, he added.
Canara HSBC Oriental Bank of Commerce Life Insurance has a pure bancassurance model with nine crore customers and a pan-India distribution network of 9,000 branches. It is aiming at increasing its penetration in the tier-II and tier-III cities, and in the past three months, it has added about 1,000 people in sales team for a deeper penetration more in the non-metro cities.
The insurer’s claim settlement ratio is hovering around 98%, while its persistency ratio is over 80%, according to the managing director.
Meanwhile, Mathur also said that the rising yields will help customers get a superior return in the traditional products in the long term.
A GROWING COVER
Rs 2,781 cr
The firm’s total business in 2017-18
Rs 818 cr
Its new business
370%
Solvency ratio
Over 35%
CAGR in the past three years in individual business
ENOUGH IN HAND
The life insurance company’s expansion plans and customer acquisitions will be funded through internal accruals
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Insurance")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}