Chennai: The Mumbai-based Birla Sun Life Insurance Company Limited expects to close this fiscal with a total premium income of Rs800 crore, including new and renewal premium. The company's total premium till date is around Rs580 crore.
"In the case of single premium policies, we account only 10 per cent of the total premium paid as premium income each year," said Nani Javeri, chief executive officer. According to him, the company earned Rs462 crore last fiscal.
Inaugurating the company's second branch in Chennai, Javeri said the company is in the process of expanding its branch network. This financial, the company will open six new branches, taking the total to 44 in 33 cities. Similarly the number of agents will increase from 10,000 to 15,000.
Birla Sun Life has topped the industry in terms of average premium per policy (Rs38,700). Javeri adds that the company has taken a conscious decision of evenly spreading out the premium income amongst different distribution channels - individual agents, banks and institutions and group business.
"While the individual agents bring in 42 per cent of the total premium, group insurance business and alternate channels like banks contribute 34 per cent and 32 per cent respectively," Javeri remarked.
The company ranks first in terms of bank insurance and group business. "Our persistency rate / payment of renewal premium is around 95.5 per cent."