Date:14/12/2006 URL: http://www.thehindubusinessline.com/2006/12/14/stories/2006121402650600.htm

Bharti teams up with AXA for life insurance foray

Our Bureau

Mutual fund, non-life venture likely in the near future

INTO NEW TERRITORY: Mr Henri de Castries (right), Chairman of the Management Board, AXA SA, and Mr Sunil Bharti Mittal, Chairman and Group Managing Director, Bharti Enterprises, at a press conference in Mumbai on Wednesday. - Shashi Ashiwal

Mumbai , Dec. 13

Bharti Enterprises and the French insurance major AXA SA may join hands to set up a mutual fund and a non-life insurance company in the near future. Globally, AXA is one of the largest insurance companies and the fifth largest asset manager.

Speaking at the national launch of Bharti AXA Life Insurance Company, Mr Henri De Castries, Chairman, AXA SA, said while the key business of the company was financial protection and life insurance, it was also looking at setting up businesses in the asset management and property and casualty insurance space.

"We commit capital as well as people to India as we believe in the economic development of this country," Mr Castries said.

"We may look at several new joint ventures and our teams are working on these new areas," said Mr Sunil Bharti Mittal, Chairman and Group MD, Bharti Enterprises.

At the end of 2005, AXA SA generated 72 billion euros in consolidate revenues and had 1,064 billion euros in assets under management. Life insurance forms bulk (63 per cent) of the company's revenue followed by property and casualty insurance (27 per cent) and asset management (5 per cent).

More branches planned

Bharti AXA Life Insurance set up shop in Delhi, Chennai, Bangalore and Kolkata on Wednesday, in addition to its existing branches in Hyderabad and Mumbai. The company plans to set up branches in 28 metros by 2007, of which, 50 branches will be in Tier-II and Tier-III cities.

Mr Nitin Chopra, CEO, Bharti AXA Life Insurance Company, said Rs 550 crore of capital would be infused into the company in the next three years. The current capital base stands at Rs 188 crore.

The company is planning a multi-distribution approach using channels such as the agency force, bancassurance relationships and corporate brokers. It will also leverage the 32-million customer base of Airtel.

Mr Mittal said the company would send direct mails and ensure a well-defined protocol is maintained for protecting customer privacy. The company has introduced two unit linked insurance plans and a traditional term product.

In the next few months, Bharti AXA Life Insurance will launch an endowment and single premium plan, Mr Chopra said.