Page 14 - Insurance Times July 2019

Private Life Insurance

SBI Life Insurance enters Max Life chief eyes on driving proprietary channel
$10 bn club in 2019 growth
After assuming charge as the MD and CEO of Max Life Insurance, Prashant
SBI Life Insurance which rose 17% in
Tripathy is on a new mission to usher in "growth mindset"
2019, so far,
within the company. He has brought focus on "customer
entered the
$10 billion obsession", a value attribute not seen in the nearly two
club (mar- decades of the insurer's existence. In an interview, Tripathy
ket cap over said he sees Axis Bank, an existing strategic partner, play-
Rs 69,000 ing a critical role in realising its growth aspirations.
crore). As of June 11, 2019, as many When asked about the strategic shift since his assuming
as 42 stocks have a market charge, Tripathy stated, "There are now sharp
capitalisation of over Rs 69,000 crore prioritisation and certainly a bias for action. Mere planning alone is not enough;
or $10 billion (Re/USD value 69). there has to be no faltering on execution, which has to come with a 'growth
These include Godrej Consumer, Bri-
mindset'. I have now brought 'customer obsession' and 'growth mindset' to the
tannia Industries, Avenue
centre stage by including them as part of the four values that the company will
Supermarts, Sun Pharma, IndusInd
focus on in the coming days." According to his statement, the four core values
Bank, Titan Company, NTPC, Asia
are 'caring', 'collaboration', 'customer obsession', and 'growth mindset'. "Cus-
Paints, Coal India, Maruti Suzuki,
tomer centricity is now finding a place in the company's values," he added.
ICICI Bank, Kotak, SBI among others.
Commenting on the future planning, he said, "In next five years, I want Max
SBI Life entered the $10 billion club
Life to be the 'most admired' life insurer in India. We have charted out a game
in 2019, while JSW Steel and
plan, where we will achieve 25 per cent growth in value of new business, 25
Vedanta failed to sustain momen-
per cent margins, and 25 per cent return (on embedded value) by 2021-22. We
tum and are out of the club. Most
were at 20-20-20 in this matrix as of March-end 2018. Now, we have reached
brokerage firms remain positive on
22-22-22 by end-March this year, which is already 40 per cent of the goal that
SBI Life Insurance and Shree Ce-
we are aiming at by March 2022."
ment, and investors who hold these
Axis Bank has been a strategic partner for Max Life. When asked about the re-
stocks should stay put. Nomura
lationship between Max Life and Axis Bank, Tripathy remarked, "There is strong
maintained its Neutral rating on
relationship across all levels. Whether they become a strategic equity investor
Shree Cements with a target price of
or not, this relationship has to remain of top order and that is a key area of
Rs 21,500. Volume growth remains
healthy for the cement major and, at focus for me in my current role. It will be a desire to create a win-win struc-
the same time, the costs are also ture, going forward. Axis owns less than 5 per cent stake in Max Life right now"
easing which is a healthy sign. He further stated that there is a big drive to increase the share of Max Life's
SBI Life has recorded 14% growth in own proprietary channels including agency network. He added, "While agency
APE in 4QFY19, which was in line brings 30%, bancassurance and others account for 70%. We need to de-risk
with 9MFY19 growth rate, though ourselves in terms of business model. Any business should have good share of
lower than 17% reported in 3QFY19. your own channel so that you are not hugely dependent on other channels."
14 The Insurance Times, July 2019