Page 39 - Life Insurance Today May 2016
P. 39
Private Life Insurance
CompaniesNews
HDFC Standard Life ini- PNB MetLife targets 30% rise in new biz premium
tiates IPO process; HDFC
to sell 10% PNB MetLife is targeting a 30 per cent rate," Tarun Chugh, Chief Executive
growth in first year premium collec- Officer, PNB MetLife, told reporters.
HDFC Standard Life has become the tion in the current fiscal. First year
first life in- premium or new business Total premium collection (first year col-
surer in the premium stood at Rs. 740 lection plus renewal pre-
country to crore till February; a 30 mium), he said, is ex-
initiate IPO per cent increase over Rs. pected to be around Rs.
576 crore reported in the 3,000 crore for the current
process. It has announced plans to same period last year. fiscal, up 20 per cent over
launch its Initial Public Offer
wherein parent HDFC Ltd would sell "First year premiums (collections) are Rs. 2,500 crore reported a year ago.
10 per cent stake. expected to grow at around 30 per Persistency ratio (the volume of busi-
cent over last year. So far, we have nesses it is able to keep) for the com-
While the financial details of the IPO been able to achieve this growth pany stood at 70 per cent; as against the
are yet to be worked out, the IPO 62-63 per cent of the industry.
could be worth at least about Rs
2,000 crore, going by the valuation Trickle Up gets MetLife grant for three years
derived by the private insurer under
its earlier off-market stake sale International NGO Trickle Up announced a new grant from MetLife Founda-
transactions. tion which is expected to deliver high-quality financial in-
clusion programs to thousands of families in the rural ar-
In a regulatory filing, Housing Devel- eas of Jharkhand, Odisha and West Bengal.
opment Finance Corporation Lim-
ited (HDFC) said the Board of Direc- The three-year, $1.1 million grant will fund the formation
tors of its non-listed subsidiary, of an eight-member alliance of Indian community-based
HDFC Standard Life Insurance Com- organizations and Trickle Up. The target will be to help uplift 100,000 house-
pany Limited (HDFC Life), has ap- holds living in extreme poverty into the formal financial system.
proved taking steps to initiate the
process for an IPO. Bajaj Allianz Life prepares to push shares to 50%
The IPO would be by way of an of- Bajaj Allianz Life Insurance plans to push the share of individual business to
fer for sale by HDFC Ltd of up to 10 50 per cent of its total over a three-year period. Individual business refers to a
per cent of its stake in the insurance kind of life insurance policy where one contract covers a single person who is
company. insured or his family. As of now it accounts for 32 per cent of the total busi-
ness; the remaining 68 per cent is mostly group insurance.
HDFC Life said that the IPO is sub-
ject to various regulatory approvals According to Subrat Mohanty, Head of Marketing & Sales Quality, Bajaj Allianz
including by insurance regulator Life, a change in regulations in Unit Linked Insurance Plans (ULIPs) and snap-
IRDAI and markets regulator SEBI. ping of ties with Standard Chartered Bank saw the share of individual business
go down. However, he said, the life insurance company has taken up a three-
year plan which will help improve individual business.
Life Insurance Today May 2016 39
