Birla Sun sees Rs 105.5 cr capital infusion

New Delhi, Aug 20 (UNI) Birla Sun Life Insurance (BLSI) today said its promoters have infused an additional Rs 105.50 crore into its capital base to expand its distribution network and to conform to the solvency margin requirements as stipulated by the Insurance Regulatory and Development Authority.

The infusion has been made in various tranches from April 2007 to July 2007 and this enhances the company's capital to Rs 777 crore as of July 31, 2007, said a statement.

The additional infusion is as per the current IRDA guidelines and is in the ratio of 74:26 between the Aditya Birla Group and Sun Life Financial Inc respectively, the statement added.

''The JV partners have a strong commitment to the growth of Birla Sun Life Insurance. The additional capital will be utilised to strengthen the infrastructure of BSLI,'' Birla Sun Life Insurance President and CEO Vikram Mehmi said.

Our distribution network is an area of focus. We are expecting to grow our branch strength with additional branches planned in smaller towns across India and expect our branch network to more than double by September 2007. Simultaneously, our technology platforms are being upgraded to support this voluminous growth, Mr Mehmi added.

For the first quarter of the fiscal 2007-08, BSLI's total business premium stands at about Rs 371 crore, out of which new business premium is about Rs 175 crore.

This marks a 121 per cent growth in total premium over the first quarter of the previous financial year. The total Assets Under Management (AUMs) of the company are about Rs 4,500 crore as of June 30, 2007.

UNI