Exide Life, the subsidiary of Exide Industries, has invested Rs 150 crores capital in the insurance sector. The company made this critical business decision in the light of the government permitting foreign direct investment (FDI) that allows 49% share holdings by the foreign players in the insurance sector.
Exide Life, previously ING Vysya Life, is the offshoot of the Exide Industries and was launched in 2001 post the inauguration of ING Vysya Bank. In the FY 14-15, the company netted a profit of Rs 65.3 crore, a 23% increase in the net profit, with the 14% increment in new insurance business.
In an interview with leading newspaper, Mr. Kshitij Jain, MD & CEO, Exide Life Insurance said, “In the current FY16, we shall focus on improving market share of our Unit Linked Insurance Product, as well as group insurance policy.”
He further said that despite the ING Vysya Bank is exiting the Bancassurance partnership due to the acquisition by Kotak Mahindra Bank; it has clocked Rs 645 crores in FY 14-15. The bank in the first three quarters of last year accumulated Rs 42 crores in premiums from its new line of business, i.e., selling insurance products.
ING Vysya Bank paid death claims worth Rs. 57 crores and maturity claims worth Rs. 494 crores in FY14-15. With the new capital investment, the paid-up capital has increased to Rs. 1750 crores, with 284% improvement in the solvency margin. Thus, the total value of premiums improved by 11% with net profits clocked at Rs. 2027 crores.
Currently, Exide Industries have formed new Bancassurance partnerships with a few co-operative banks and has a team of agents to sell insurance products.
Source: This news was published on May 5, 2015 in economictimes.indiatimes.com under the title: Exide Industries infused Rs 150 crore in insurance arm in 2014-15