26-Nov-2008LIC International logs 104% cumulative growth in Jan-Oct
LIC International (Bahrain), the overseas arm of Life Insurance Corporation (LIC), has scored over its parent with a cumulative growth of 104% in January- October this fiscal.
On its part, LIC suffered one of the biggest knocks in the April-October period, with a 16% de-growth. Sudhin Roy Chowdhury, CEO and managing director. "There has been an 854% growth in premium in October alone. Being vulnerable to international market tremors, we were very cautious about our investment pattern. Plus the prudent marketing strategy in the last few months paid off."
Unlike in India, where investments of insurance firms have to comply with regulatory norms, insurers in the Gulf can be flexible on investments.
"The strategy had to be prudent. We preferred government bonds, financial securities in the energy sector. We did not opt for futures or derivatives or any so called toxic investments. Managing cash flows is crucial at this stage. In fact, we did some exit payments in October without encashing investments. We have a comfortable solvency margin and have money in general reserves", Roy Chowdhury said.
LIC International has raked in a total premium of $50-60 million as of now with a first premium income of $17 million in January-October, as against $9 million in the corresponding period last year.
"We expect to close the fiscal with $20 million premium. The only hitch is the appreciation of the dollar against the rupee now. NRI customers are remitting back money to take advantage of this," he added.
LIC International, which has been low profile in international markets, went in for a campaign in the last few months in all the Gulf countries to leverage a customer base of 80,000.
"The key challenge is to make LIC International's product the customer's choice and to achieve a global footprint. We are close to finalising a branch in Thailand. For Malaysia, we would be going in for a tie-up with a broker and negotiations are on. Next year, we plan to set up an office in USA and with the free trade agreement between the countries, capital will not be an issue," Roy Chowdhury said.
Source : www.insuremagic.com
LIC International (Bahrain), the overseas arm of Life Insurance Corporation (LIC), has scored over its parent with a cumulative growth of 104% in January- October this fiscal.
On its part, LIC suffered one of the biggest knocks in the April-October period, with a 16% de-growth. Sudhin Roy Chowdhury, CEO and managing director. "There has been an 854% growth in premium in October alone. Being vulnerable to international market tremors, we were very cautious about our investment pattern. Plus the prudent marketing strategy in the last few months paid off."
Unlike in India, where investments of insurance firms have to comply with regulatory norms, insurers in the Gulf can be flexible on investments.
"The strategy had to be prudent. We preferred government bonds, financial securities in the energy sector. We did not opt for futures or derivatives or any so called toxic investments. Managing cash flows is crucial at this stage. In fact, we did some exit payments in October without encashing investments. We have a comfortable solvency margin and have money in general reserves", Roy Chowdhury said.
LIC International has raked in a total premium of $50-60 million as of now with a first premium income of $17 million in January-October, as against $9 million in the corresponding period last year.
"We expect to close the fiscal with $20 million premium. The only hitch is the appreciation of the dollar against the rupee now. NRI customers are remitting back money to take advantage of this," he added.
LIC International, which has been low profile in international markets, went in for a campaign in the last few months in all the Gulf countries to leverage a customer base of 80,000.
"The key challenge is to make LIC International's product the customer's choice and to achieve a global footprint. We are close to finalising a branch in Thailand. For Malaysia, we would be going in for a tie-up with a broker and negotiations are on. Next year, we plan to set up an office in USA and with the free trade agreement between the countries, capital will not be an issue," Roy Chowdhury said.
Source : www.insuremagic.com
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