Birla Sun Life Insurance increases capital to Rs. 440 crore to support rapid expansion
1st February, 2006
Birla Sun Life Insurance (BSLI) announced today that it has increased its paid-up capital to Rs. 440 crore through an additional capital infusion of Rs. 40 crore. The joint venture partners, the Aditya Birla Group and Sun Life Financial Inc., have contributed the increase in capital. This is the third infusion in the current financial year, taking the total capital infused during the financial year to Rs. 90 crore.
Commenting on the new capital injection, Mr. Nani Javeri, CEO, BSLI, said, "Life insurance is a capital intensive business. With robust operations and processes in place, we are now eyeing rapid growth through increased branch expansion and penetration in the Indian market. The additional capital will be utilised to increase distribution reach and to upgrade technology to handle increased volumes of business and provide superior customer service".
BSLI is looking to increase its branch strength to over 80 in the current financial year. Recently, the company crossed the one million mark, in terms of number of lives covered since inception. An analysis of the policyholder base reveals that the customers of BSLI are spread across 1000 towns and cities in India. While the company has achieved significant distribution reach through its branches, bancassurance, corporate agency and broking partners, it is aiming to achieve higher penetration of its products across India.
BSLI has been consistently focusing on the quality of its business as reflected in the highest persistency ratio in the industry. The persistency ratio has consistently remained at high levels even with the growth in the business. The capital efficiency of BSLI, which is the ratio of cumulative new premium to capital, continues to be the highest amongst all private life insurers. The operating expenses as a percentage of the premium have been consistently coming down.
About the Aditya Birla Group
The Aditya Birla Group has a turnover close to Rs. 33, 000 crore (as on 31 March 2005) and is one of the largest business houses in India. It enjoys a leadership position in all the sectors in which it operates. With over 75 business units, spanning the South East Asian belt, Africa, Canada and the UK among others, it is reckoned as India's first multinational corporation. The group is anchored by 72,000 employees and has 7 lakh shareholders, with a market capitalisation of Rs. 30, 500 crore.
Additional information is available at www.adityabirla.com
About Sun Life Financial Inc.
Sun Life Financial Inc. is a leading international financial services organisation providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of 31 December 2004, the Sun Life Financial group of companies had total assets under management of USD 298 billion.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol "SLF".
Additional information can be found at: www.sunlife.com
For further information kindly contact:
Ms. Anjana Grewal,
Vice President - Marketing and Communication,
Birla Sun Life Insurance Company Limited
Tel: 022 - 5678 3333