Tata AIG expands business in eastern region

Kolkata, May 25 (UNI) Tata AIG Life, the joint venture of Tata Group and American International Group, Inc (AIG), today announced its expansion plan for the eastern market by setting up new offices.

The share of eastern region in the total income of the company is 24 per cent. The company currently operates through seven offices in the eastern region--four in Kolkata and three in Durgapur.

Elaborating on their expansion plans Tata AIG Managing Director Trevor Bull said, ''We will add ten new branches in the eastern region and all over India we will expand our business to 120 from the existing 70 offices.'' Elaborating on their current insurance market, Mr Bull said 50 per cent of their product is traditional and the rest is of the Unit Link Insurance Plans(ULIP).

Adding that the market penetration is 2.5 per cent Mr Bull said, ''The total revenue from premium is Rs 1,367 crore of which Rs 478 is from new premium. The retention rate of the company is 97 per cent.'' Asked about the capital infusion for the expansion plan Mr Bull said, ''We are aiming at doubling our premium revenues, so the amount of capital introduction can be well inferred.'' Mr Bull stated that they were setting aside their plans to achive the breakeven. ''Life Insurance companies take a number of years to achieve breakeven. We are willing to defer our profitability,'' Mr Bull said.

Iterating on the the share of bank assurance, Mr Bull said,''We have tie-ups with HSBC, Union Bank of India(UBI), Citi Financials, Punjab National Bank(PNB) and Vijaya Bank. Bank assurance comprises 32 per cent of the premium.'' To a query on how the company would deal with HSBC following the tie-up of HSBC Insurance and Canara Bank, Mr Bull said they have signed an MoU with HSBC and the functioning of Tata AIG would in no way be affected.

Mr Bull informed that they are looking forward to increasing their market share in ULIP from 50 per cent to 70 per cent.

Vice-President(East) Tata AIG Manish Lalwani further disclosed their expansion plans in Kolkata, Sreerampore, Haldia, Burdwan and several other districts of the state.

UNI