Page 39 - Life Insurance Today March 2018

Private Life Insurance

News
News
Companies NewsNews
News

Agreement between BoM and Reliance APE grows at 15% for pri-
Reliance Nippon Life Insurance Co Ltd recently stated that a comprehensive vate players
bancassurance agreement is signed with Bank of
Maharashtra. "This partnership is aimed at enhanc- The private players enjoyed growth
at 15% y-
ing the bank's customer proposition and position-
o-y in
ing the bank as the most preferred financial ser-
vices supermarket. This partnership further aims to their An-
maximise the distribution fee potential for the nual Pre-
bank. "Bank of Maharashtra presents a very large opportunity and we look for- mium
ward to deploying technology enabled processes to harness this alliance. Our Equivalent
(APE), whereas the LIC posted a
long-term protection and assured return product suite complements the of-
fering from the Bank," Ashish Vohra, Executive Director & CEO slower APE growth of 7% y-o-y to Rs
2,786.1 crore in January, while the
"This, together with the Bank's brand salience in its core markets, allows us to overall momentum seems to be
leverage our capabilities for maximizing value to our customers," Vohra added, slowly moderating, the weakness
also mentioning that Reliance Nippon Life Insurance, with vast distribution cov-
last month was driven by two large
erage of over 700 branches, is uniquely positioned to service the bank's cus- players, ICICI Life and SBI Life; pri-
tomers and distribution operations across urban and rural markets.
vate sector growth, excluding these
Max Life emerges as front runner to buy IDBI Federal two players, was 32% compared to
27-37% during the past six months
Life Insurance in the individual APE," said the
Max Life Insurance Co. Ltd has emerged as the leading candidate to buy out or Kotak Institutional Equities report.
pick up a majority stake in IDBI Federal Life Insurance According to data from the Life Insur-
Co. Ltd, said sources. IDBI Federal Life is valued at ance Council, new business premi-
around Rs.6,000 crore, said one of the two people, ums for the month of January for life
adding that Max is more likely to buy a 51% stake in insurance companies fell by about
the firm. The person declined to be identified. 3% to Rs. 12,715.93 crore against Rs

In 2017, Analjit Singh-promoted Max Life's proposed 13,110.72 crore a year ago.
merger with HDFC Standard Life Insurance Co. Ltd collapsed after failing to win According to the Kotak report, "Pri-
regulatory approval for a union that would have created an insurance giant with vate sector players reported a 15%
Rs1.1 trillion in assets. growth in overall APE in January,
"All options are being looked at," said the person. "If a foreign insurer comes, it down from 21% in December 2017
can't pick up more than 49%, which will mean that the existing foreign partner and 23-74% in the preceding eight
will have to go and the existing domestic partners will have to dilute part of their months. LIC's growth rate moder-
stakes. If an Indian insurer comes, it will have the option to pick up the entire ated to 7% from 14% y-o-y in De-
stake in the company." IDBI Bank Ltd holds a 48% stake in IDBI Federal Life while cember. On a YTD basis, private sec-
tor is up 27% and LIC is up 16%."
Federal Bank Ltd and Belgian life insurer Ageas SA/NV hold 26% each.
Life Insurance Today March 2018 39