Max New York Life expects to turn profitable in FY11

Mumbai, Apr 25: Private insurer Max New York Life is hoping to turn profitable in 2010-11 on the back of its high product performance and growth in renewals, a top company executive has said.

"We are expecting to turn profitable in FY11, following increase in new product sales and rise in renewals, which grew by almost 25 per cent," Max New York Life Director and Chief Marketing Officer Anisha Motwani said.

The company's renewals from Apr 2010 to Feb 2011 stood at Rs 3,238 crore, a growth of 26 percent as compared to the year-ago period.

Similarly, the total new business premium collected during the Apr 2010 to Feb 2011 period witnessed a 12 percent growth at Rs 1,789 crore.

"We expect to collect over Rs 2,000 crore new business premium in FY11," Motwani said.

The company, which has a product portfolio split is Traditional 86 per cent and unit-linked 14 per cent, plans to focus on enhancing its productivity.

"We are planning to focus on mass affluent segment representing 80 per cent of new premium and whose average disposable income may to go up to Rs 25.3 trillion in 2015 from Rs 6.7 trillion in 2005.

Going forward, the 10-year-old company, will also stress on long-term savings and protection with a minimum tenure of 10 years," she said.

The company will also focus on multi-channel distribution and quality agency distribution, she said.

The private insurer, who focuses on traditional offerings, plans to add six new products this year with a 50:50 split between traditional and ULIPs to its existing 21 offerings, she said.

Besides this, Max New York Life also has six products offerings and seven riders in group insurance business.

Max New York Life Insurance is a joint venture between Max India Limited and New York Life International, the international arm of New York Life and a Fortune 100 company.

The total capital infused is Rs 1,976 crore, she said adding, it is sufficient and there will be no additional capital required for the business.

The company has 521 offices spread across 389 cities across the country with about 7,500 employees.

Besides this, Max New York Life also has 6 products offerings and seven riders in group insurance business.

Max New York Life Insurance is a joint venture between Max India Limited and New York Life International, the international arm of New York Life and a Fortune 100 company.

The total capital infused is Rs 1,976 crore, she said adding that it is sufficient and there will be no additional capital required for the business.

The company has 521 offices spread across 389 cities across the country with about 7,500 employees.

PTI